Unemployment



Unemployment

Introduction

Economic recession period of 2007 had immense impact on economies of the countries in the world. It affected developing as well as developed countries to larger extent. The past economic crises are responsible for many problems like inflation, reduction in economic growth and rising unemployment in various countries of the world. Among all these problems this study aims to emphasize on the problem of unemployment especially in UK and Germany the two European countries.

The condition of Unemployment refers to the failure to get employment and directly impact on the social and economic conditions of any country. He further reveals that the presence of unemployment condition in the economy causes permanent losses of outputs of services and goods. It badly effects the population especially to those people who are less educated and have low skills. In addition to this unemployment can reduce the stability in businesses and private investment. The below discussion covers the unemployment conditions of UK and Germany and also aims to discuss the possible measures in order to reduce the unemployment in both the countries. According to (Kohlrausch, B. ,2012,nd ) there is youth unemployment in Germany but it is low as compared to other countries.

Discussion

Unemployment in UK

The history of UK economies tells that there was very low rate of unemployment in 1950s and 1960s. But with passage of time and due to change of various factors like advancement in technology, increase in international trade and inflation has changed the situation of the economy of the country. The country lost full employment situation and now a days the country is facing increasing unemployment trend especially among the youth. The ratio of Youth unemployment in UK is rising. It represents those people who are under age of 18-25.With respect to the news of BBC; the rate of unemployment in the UK economy has shown an increase of 129,000 as according to the last three months which was 2.62 million in the last September of 2011. According to the analysis made in this report the youth aged between 16 to 24 years has already reached up to the record level of 1.02 million as according to the last quarter. On the other hand the rate of female unemployment is also higher than expected by the government. This is because of the education factor and on the other hand, the most important factor is the movement of industry from UK and US to China.

Most of the industries and the companies have set upon their manufacturing plants in China with a view to save their cost. One of the most important fact is the immigration policy of the UK government, UK is regarded a service industry while Government has placed a number of restrictions on it now. With respect to the international office of statistics and records (ONS) the release statement has given the ratio of unemployment in UK to about 8.3%. Further to this, the Governor of bank of England is also of the view that, for ...