The paper "Eurozone Unemployment at Record High as Inflation Drops" is a great example of a macro & microeconomics article. By March 2013, the rate of unemployment in the Eurozone had hit a record high of 12.1%, from the figure recorded in February of 12%. Approximately 19.2 million people are presently unemployed in 17 countries. A total of 3.6 million youth in the Eurozone are also presently out of work. 59.1% of the youth in Greece and 55.9% in Spain were not employed by the end of January this year.
The good news is that inflation has dropped to the lowest in three years (BBC News 1). With reference to various economic concepts and theories, this discussion aims to provide an analysis of unemployment and inflation in the Eurozone. The discussion will focus on unemployment and inflation in the Eurozone in reference to the article titled “ Eurozone unemployment at a record high as inflation drops” Posted on 30 April 2013. Unemployment According to Susanto and Bundick, The rate of unemployment broadly refers to the percentage of the labor force that is out of work at a given time in an economy (5).
Labor force in this context refers to the aggregate number of employed and unemployed workers in an economy. People who are willing to work but have been unable to secure employment in the previous four weeks are referred to as discouraged workers. There are three categories of unemployment; frictional unemployment, structural unemployment and cyclical unemployment (Calfors and Drfill 78. Frictional unemployment Frictional unemployment refers to unemployment that is short-term and arises from processes of matching jobs with workers. A majority of the people in this category are college or university graduates and school leavers searching for their first job.
This category also includes those who have been absent and are getting back to their jobs, as well as people who lost or quit jobs and are searching for new ones (Bloom 31). Structural Unemployment Structural unemployment refers to unemployment that arises by persistent failure to correctly match the skills and qualities of workers with job requirements.
BBC News. Eurozone unemployment at record high as inflation drops. Retrieved on May 19, 2013 from
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