Unemployment is one of the most important concerns of nowdays. Today, when the population of the Earth grows and the technical progress continues depriving people of working places, unemployment is a fear spread all over the world. Unemployment isn’t only a certain person’s problem but a real threat to the economy of any country. There is a deep connection between unemployment rate and the economy of the country. Hereby, the analysis of the unemployment situation of two countries is given. The data sets were taken from Internet and last TV news all over the world.
First, Germany that lately is heard to have a considerable economical crisis and second, and , the second, India , Asian country, that is also passing now through a period of economic changes. Germany. OFFICIAL NAME: Federal Republic of Germany (FRG) CAPITAL: Berlin SYSTEM OF GOVERNMENT: Federal Multiparty Republic AREA: 357,020 Sq Km (137,846 Sq Mi) ESTIMATED 2005 POPULATION 81,025,000 All the world during few last years was watching what was happening to the biggest economy in the European Union.
BBC News reports that the unemployment figure in February for Germany is at record levels. 5. 216 million workers—or 12. 6% of the workforce—can’t find employment, the highest rate since the 1930s, when most of the major world economies experienced their most severe recession in history. There are many versions referring to the reasons that caused unemployment. One of them: high taxes, the high cost of labor, an inflexible labor market, the welfare state and, as a result, a large government sector are the main causes of sluggish growth and high unemployment.
There is an opinion that many people in Germany don’t want to work because they get so-called “unemployment benefits”. So, they get enough money without working. As “Of economies and Policies” site says “It is an economically accepted fact that some leading causes of structural unemployment are laws such as unemployment benefits and a minimum wage. Forcing that kind of stability instead of letting it happen naturally reduces employment significantly. This is the reason that Canada and European countries often have unemployment rates many times ours.
”(No author 2005: n. p. ) But the unemployment influences badly to the main economic factors of the country. Cyclical weakness and the structural problems of the economy impact strongly on public budgets, while uncertainty about how public finances will be put on a durably sustainable path is a further factor undermining confidence. Re establishing Germany’s traditional economic strength requires a comprehensive policy response within a coherent framework.
The trends one can see in the situation with unemployment in Germany aren’t too satisfactory. As statistics shows the level of unemployment is unstable and only the right labor policy can correct the situation. The unions in Germany are very strong and they bother to create a unique labor force structure in the country. That’s the opinion of many analysts of the world. With the following, the table with data sets of unemployment in Germany is given(2005). The level of unemployment in 2006 is expected to be of 11. 5-11. 8 percent.