Exploring Unemployment and Inflation.pptx

Learn about the causes and effects of unemployment and inflation, as well as the steps that may be taken to ease them

1. Exploring Unemployment and Inflation Learn about the causes and effects of unemployment and inflation, as well as the steps that may be taken to ease them. GROUP 1

2. Introduction : Welcome to our presentation on unemployment and inflation. In this deck, we will explore different types of unemployment, the causes and impacts of inflation, and remedies to reduce unemployment. Through this presentation, we hope to provide you with a comprehensive understanding of these important economic concepts.

3. Different Types of Unemployment Frictional Unemployment A short-term phenomenon that occurs when individuals are between jobs or entering the workforce. Structural Unemployment Long-term unemployment that arises from a mismatch between the skills and qualifications of workers and the job requirements of employers. Cyclical Unemployment Unemployment that occurs as a result of economic cycles or downturns. Seasonal Unemployment Unemployment that is driven by seasonal fluctuations in demand for labour.

4. Personal, Social Cost and Philips Curve 1 Personal Costs of Unemployment Unemployment can lead to financial instability, mental health issues and strained relationships. 2 Social Costs of Unemployment Socially, unemployment can lead to poverty, social exclusion and political instability. 3 Philips Curve A graphical representation of the inverse relationship between unemployment and inflation. As unemployment lowers, inflation increases.

5. Unemployment in Sector, Age, and Educational Wise Sector-wise Unemployment Construction and manufacturing sectors tend to have higher unemployment rates, while service sectors have more stable employment figures. Age-wise Unemployment Youth unemployment has been a persistent issue in many economies, which can have long-term impacts on individuals and the economy. Education-wise Unemployment Graduates' underemployment has also been a concern, affecting the career prospects of individuals.

6. Remedial Actions to Reduce Unemployment 1 Public Works Programs Government-led programs that directly create jobs are an effective solution to reducing high levels of unemployment. 2 Skill Development Programs Trainings and skill development programs can help workers improve their abilities and transition to new sectors. 3 Lowering Interest Rates Lowering interest rates can encourage borrowing by businesses, leading to an increase in investment, employment, and national income. 4 Fiscal Stimulus Government spending to increase aggregate demand can help reduce unemployment and stimulate economic growth.

7. Inflation & Types of Inflation 1 Inflation and its Types Inflation is the rate at which the general level of prices for goods and services is rising, resulting in reduced purchasing power. Hyperinflation, Disinflation, hide inflation, open inflation, and Demand-pull inflation are some of the types. 2 Measuring Inflation Inflation can be measured using indices such as the Consumer Price Index (CPI) the Wholesale Price Index (WPI).

8. 1 Hidden Inflation 1.Misleading Price Stability 2.Consumer Dissatisfaction 2 Hyper Inflation 1. Unemployment 2. Currency Devaluation 3 Disinflation 1. Reduced Spending 2. Improved Purchasing Power Impact of each type of inflation

9. The Consequences of Inflation Reduced Purchasing Power Inflation reduces the value of money over time, reducing purchasing power and the standard of living for individuals. Income Redistribution Inflation can cause a redistribution of income and wealth from savers to borrowers, leading to social and economic inequalities. Impact on the Business Environment Inflation can lead to higher costs, uncertainty, and a loss of confidence in the economy and the government.

10. The Consequences of Deflation Incentivising Saving Deflation can encourage saving, leading to reduced spending, weaker demand, and consequent slowdown in economic growth. Rising Real Wages Deflation can lead to an increase in real wages, meaning that individuals can afford more goods and services, improving their quality of life. Reduced Investment Deflation can lead to reduced investment in plant, equipment, and buildings as a result of pessimistic expectations of future profits.

11. Conclusion Understanding the complexities of unemployment and inflation is crucial in navigating the economic landscape. By exploring the different types of unemployment, the impacts of inflation and deflation, and the remedial actions available, we can work towards a more stable and prosperous future. Thank you for joining us on this exploration!

12. Thank You Thank you for joining us for this presentation on unemployment and inflation. We hope you found it informative and engaging. At this time, we'd like to open up the floor for any questions you may have. Please feel free to ask us anything related to the topics we've discussed today. Q&A