The Main Determinant of National Employment - Assignment Example

The paper "The Main Determinant of National Employment " is a perfect example of an assignment on macro and microeconomics. National employment is a situation where a nation attains a status in which there is total employment when the labor market is in equilibrium. The main determinant of national employment involves a situation where the demand for work by people of the working category is met by an adequate supply of work. 2) Explain what is meant exactly by the national level of unemployment.

National unemployment is the level of unemployment that persists even when the labor market is in equilibrium. This implies that a number of people remain unemployed although they are willing and able to work. 3) Explain the importance of the level of national unemployment: a) From the point of view of its impact on the national economy; b) From the point of view of its impact on society (ie. from a social standpoint). The national level of unemployment shows the number of people in a given country who are actively working and meeting their needs.

Based on these figures, a government can plan its welfare systems and processes in order to find the best ways of dealing with the needs of its people. a) On a macroeconomic level, unemployment leads to a recession because more and more people will rely on the little income and there will be stress on the economy because the government will have to make some easing in order to supply sufficient money for the people. Where there is a high level of national unemployment, it implies that there are many people in the nation who do not have jobs.

Hence, there is a general tendency for inflation and economic hardship because there will be more people on welfare. b) This will imply that social security will be slumped and in the long run, there must be a higher deduction on the working class in order to pay for benefits for the unemployed. This will cause a slump in the economy and reduced spending amongst people in society. 4) Explain what is meant by the national workforce. The national workforce refers to the number of people above the legal working age in a country who are willing and able to work in order to attain remuneration. 5) Explain what is meant by the rate of unemployment.

This is a percentage of the workforce who are available for work and are willing to work but are not employed.