1. UNEMPLOYMENT
RUBEN FONSECA 2013

2. EUROZONE
UNEMPLOYMENT When
RATES (JANUARY Unemploym
2013)
30.00% ent occurs?
25.00% Unemployment occurs
when people are without
20.00% work or actively seeking
work.
15.00%
26.40% [VALOR] It is caused when
10.00% someone is laid off, get
[VALOR]
[VALOR] [VALOR] fired or quits…
5.00%
0.00%
Greece Spain Portugal Slovakia Ireland
Source: Trading Economics

3. CAUSES OF
UNEMPLOYMENT

4. OVER POPULATION
Too much population can increase unemployment, because governments are unable
to create too much jobs at the same time.

5. FOREIGN PRODUCT COMPETITION
If a foreign product is cheaper than a national product, most of the people will buy the
cheaper one, so national companies will suffer and will need to fire people, due to low
demand.

6. ECONOMIC INFLATION
When an economic inflation hits a country, many companies won’t be able to compete
with other companies (most of them foreign) and will need to shut down their facilities.

7. ECONOMIC RECESSION
When an economic recession (or crisis) hits a country, many companies shut down their
facilities, leading to dismissal a lot of people.

8. TECHNOLOGY
Many companies only accept people with higher grades or specifications, due to
tecnology… Many people don’t have those specifications, so they can only aplly to jobs that
accept lower grades.

9. CONSEQUENCES OF
UNEMPLOYMENT

10. LOSS OF INCOME
Most of unemployment people will experience a decline on their living standards and some
of them will have financial problems and difficulties to pay their taxes .

11. LOSS OF NATIONAL OUTPUT
A country’s economy will see it’s GDP going down because some people choose to leave
the labour market permanently, which could have a negative effect on the economic growth.

12. FISCAL COSTS
Due to the fall in tax revenues, a government could see it’s budget deficit increased. That
leads to raise taxation, applied by most of the governments in a crisis.

13. SOCIAL COSTS
Some unemployed people can have a relationship with crime… Increased divorce
rates, worsening health and lower life expectancy are also other consequences.

14. UNEMPLOYMENT
SOLUTIONS

15. CREATION OF MORE JOBS
If a government creates more jobs, the unemployment rate will drop, as well as some
problems related to unemployment.

16. STIMULATION OF THE ECONOMY
Creating funds and helps to national companies, will stimulate a state’s economy and it’s
economic growth.

17. NATIONAL PRODUCTS WITH LOWER PRICES
If the national products are cheaper than the foreign products, many people could buy the
national ones, due to the lower price.

18. INVESTMENT ON THE PRIMARY SECTOR
A strong primary sector, will be less damaged when a global crisis hits a country. A strong
agriculture, fishing and trade will be essential to a state’s economy.