StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Unemployment in Brazil after the Financial crisis of 2008 - Essay Example

Cite this document
Summary
This essay talks about the problem of unemployment in Brazil, which was observed in the country after the financial crisis of 2008. Unemployment rate is the number of unemployed persons divided by the total labor force, where the labor force is a combined number of unemployed and employed persons…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.9% of users find it useful
Unemployment in Brazil after the Financial crisis of 2008
Read Text Preview

Extract of sample "Unemployment in Brazil after the Financial crisis of 2008"

Download file to see previous pages

The tax cuts made the corporations use the money to keep already employed and even hire new ones despite the harsh economic times. The actions though not much helped to lower the unemployment thereby saving the economy from collapsing. The trends witnessed in the year 2009 and 2010 shows unemployment lower in 2010 was lower than in 2009, on average it showed a decrease of 61% between the two years. Unemployment has a direct bearing on Brazil’s debt, at the time unemployment began to improve in 2009 – 2010 fiscal year, the country debt was on the decline, and trade increased and thus exports were up due to favorable climate to conduct business (Turner, 2012).

Unemployment rate is the number of unemployed persons divided by the total labor force, where the labor force is the number of unemployed plus the number of employed persons. Employment rate measures the percentage of employable people in a country’s’ workforce who are aged 18 years and have either lost their job, or unsuccessfully sought jobs during the last month. This workforce is supposed to be actively seeking employment. Unemployment Rate =Number of Unemployed/ Total Labor Force. Unemployment rate in Brazil is averaged 8.

84% from 2001 to 2013, reaching an all time high of 13% in 2004 and record low of 4.60% in December 2012 (OECD, 2013). In Brazil, unemployment measures the number of people actively seeking employment as a percentage of the labor force. This is measured monthly in the major metropolitan cities of Brazil. The summary is as represented below: Table 1 Brazil metropolitan areas 2003 -2009 Unemployment Rate in Percentage points Year Recife Salvador Belo Horizonte Rio de Janeiro Sao Paulo Porto Alegre Curitiba Total 2003 13.8 16.7 10.8 9.2 14.1 9.5.

This essay offers a modern analysis of the issue of unemployment in the Brazilian economy and reviews federal measures, introduced by the government to fight this problem. The international financial crisis after the 2008 September had a considerably negative impact on Brazilian economy, leading to a significant increase in the unemployment level. Unemployment is the situation arising from a willing and able person to undertake paid work responsibilities, being unable to get a job. There are several classifications of unemployment.

Demand Deficient Unemployment occurs in recession or a period of low growth. Voluntary Unemployment happens when workers prefer not to work. Frictional Unemployment occurs when workers are in between jobs. Structural unemployment occurs as a result in inefficiencies in the labor market resulting from a mismatch of skills or geographical location. Classical unemployment occurs when wages are artificially kept high above the equilibrium leading to excess supply of labor Employment and economy are directly related in any country.

Any change in the economy whether positive or negative, has an implication in employment. Brazil’s unemployment rate is seen on the decline thanks to federal measures introduced by the government. Programs meant to protect workers such as the expanded unemployment insurance were of great significance during the period of economic recession. Additional efforts were put in place aiming towards the sustained supply of credit and recovery of the growth trajectory of the economy.

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Unemployment in Brazil after the Financial crisis of 2008 Essay”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1489440-unemployment-in-brazil-after-the-financial-crisis-of-2008
(Unemployment in Brazil After the Financial Crisis of 2008 Essay)
https://studentshare.org/macro-microeconomics/1489440-unemployment-in-brazil-after-the-financial-crisis-of-2008.
“Unemployment in Brazil After the Financial Crisis of 2008 Essay”, n.d. https://studentshare.org/macro-microeconomics/1489440-unemployment-in-brazil-after-the-financial-crisis-of-2008.
  • Cited: 0 times

CHECK THESE SAMPLES OF Unemployment in Brazil after the Financial crisis of 2008

Government Reforms in Brazil

(MARE-Brazil)The bureaucratic reforms pursued in Brazil were thus patterned after the UK model that is also popular in other OECD countries.... The informal economy in brazil is so large it is not limited to small and medium scale enterprises but extends to large concerns in the retail and construction industries.... But Brazil's share of the global crisis was compounded by its need to address the challenges common to a newly restored democracy just rising from longtime, constricting military rule....
4 Pages (1000 words) Essay

Mounting Inflation in Argentina Threatens Business Environment

Most of the hyperinflationary conditions have risen across the Globe after the Second World War.... (Lendman 2008) The figures are just a global forecast of which Argentina the highest note that Brazil has managed to emerge out of its hyperinflationary condition and is well on the road to recovery.... The recent global financial meltdown has given rise to many questions about hyperinflation across the Globe and how long it would last and whether this would give rise to another Great Depression 2....
6 Pages (1500 words) Research Paper

Transition Economy of Brazil

Russia learned its lesson well from an earlier financial crisis when the unwieldy growth of soft loans skewed its market (Dunn, 2006).... in brazil, vital industries and services like oil, gas, telecommunications and postal service used to be under state monopolies.... This paper entitled "Transition Economy of brazil" concerns the creation of growth in the transition economy of brazil.... Of the current transition economies, brazil comes second only to China as the world's largest holder of foreign direct investment with a stockpile of $30....
9 Pages (2250 words) Research Paper

Success of Banco Central in Managing the Rate of Inflation

hellip; The significant improvement in transparency and credibility that has taken place over the past three years has been incorporated into the working structure of the Brazilian Central Bank (Banco Central, 2003). Brazil faced a financial crisis in 1999, both fiscal and balance of payment weaknesses, which was the spill-over effect from the previous year.... The implementation of floating exchange rate regime and of the inflation targeting regime in brazil at a critical moment for the Brazilian economy in 1999 is a hallmark in the history of Central banks in emerging economies....
6 Pages (1500 words) Essay

Unemployment in Classical Economy

Unemployment level in G5 countries during 1998-2008 has been different.... For January 2008 in the U.... in 2008.... unemployment is of different types and their causes are also of different types.... Insufficient effective demand for goods and services in an economy is the main cause of cyclical unemployment according to Keynesian economics.... unemployment Advocates of Structural economics argue that unemployment is the result of structural problems in economy such as inefficiencies, inherent in the labor market....
14 Pages (3500 words) Essay

Macroeconomics of Argentina

It is argued that a new paradigm of stable political governance and economic simulation is established in Argentina after the crisis of 2002 as a re-institutionalized market for investment and economic growth.... When the crisis of 2001/02 ended, the economy started showing signs of recovery as the major social indicators continued improving significantly.... This paper focuses on a brand new economic nationalism, introduced after the 2002 crisis....
5 Pages (1250 words) Research Paper

Youth Unemployment - Global Perspective

It has been a common consensus that performance of the youth employment has been less than impressive in almost all developed nations; but, this book has pointed out that youth unemployment had been aggravating in British economy much before the crash of 2008.... The paper "Youth unemployment - Global Perspective" states that improved training can provide a major boost to the job search process and result in the creation of better jobs.... has also been regarded as one of the worst performers among the other G8 nations, in terms of youth unemployment....
10 Pages (2500 words) Term Paper

Costs and Benefits of Financial Globalization for Developing Countries

The case study "Costs and Benefits of financial Globalization for Developing Countries" states that financial globalization is the incorporation of the domestic economic system with global markets.... nbsp;… When there is a rise in capital movement within several countries, integration is achieved, leading to financial globalization.... Domestic lenders and borrowers take part in the international market with the use of global financial intermediaries....
9 Pages (2250 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us