Unemployment Within the Labour Market is Primarily Voluntary Essay

Unemployment Within the Labour Market is Primarily Voluntary - Essay Example Unemployment within the Labour Market is primarily voluntary Macroeconomics is a discipline that entails structure, performance and behavior of the economy as a whole.Conversely, microeconomics is a discipline that puts emphasizes on the market behavior of individuals, consumers and organisations in the efforts to understand the decision making process of organisations and households. It is concerned with the relations of individual buyers and sellers. Both macro and micro economics play a great role pertaining to unemployment in the world especially in the United Kingdom (Wyplosz and Burda 2009) The connection between these two disciplines and policies has led to constant media attention as well as a central role in political debate (Price and Chrystal 1995). The recent slow down in the economic activity in, U.K, has raised new issues over the unemployment policy with clear evidence of failure of economic policies adopted since the election of the current government. Though there has been growth over the past few days, very little has been do ne in the reduction of unemployment. Concepts such as human and social capital have been used as the basis of analysis into this predicament. The recent certified data on a market research in the UK market shows a great drop in the unemployment although the labour market still remains extremely weak. Elevated unemployment combined with squat growth in pays is certain to persist on the economic trend in the coming days. According, to Bade and Parkin 1983, the labour survey measure by the government there has been a notable decline of rates in jobless from 16-year high of 8.4% to 8.3% in the last three months giving way to an improved labour market. ... e government there has been a notable decline of rates in jobless from 16-year high of 8.4% to 8.3% in the last three months giving way to an improved labour market. The vacancies data has also fallen as it casts doubt on whether the private sector is in a position to recruit a sufficient number of people to balance the increased rates of unemployment being experienced in the public sector. Toting up, the inflation runs at 3.5% thus affecting the pay growth that has dropped to a large extent leading to a lug on the spending of consumers and the growth of the economy though the lug is much less compared to the previous years (Taylor 2000). Concepts Human Capital and Social Capital Human capital concept denotes elaboration of the metaphorical statement, which states that education is the investment in the future. As a rule, the analytical tools that are applied to investments in this capital include a measure of stocks and rates of return to investments. This may as well be extended in order to verify the skills and knowledge applicable to an individual’s experience in the labour market (Christos 2005). Analysis carried out on the long term unemployment has proved that work experience is related to the growth of human capital. In addition, long periods of joblessness could lead to a fall in human capital, which is also known as skill atrophy. Likewise, skills can be corroded if they are not put to practice while knowledge becomes outdated if it is not updated. Thus, employment could be related to a particular set of adopted behaviours and attitudes, which include communication, punctuality, dressing mode and so on. The main effect of erosion on such behaviours is connected to prolonged unemployment (Nadiri and Arango 1981). On the other hand, Lewis and Artis 1991