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Aims and Objectives

The aims of this project are: To define unemployment To state the problem of unemployment in the Jamaican economy To state the different types of unemployment To investigate the complications incurred by unemployment on the Jamaican economy as well as its people To investigate and highlight the rates of unemployment in Jamaica To suggests ways of rectifying this problem in Jamaica

Methodology Employed
The researcher distributed 40 questionnaires among unemployed persons; 20 to males between the ages of 18 and 65 years and to females between the ages of 18 and 60 years. Taking into consideration the age of retirement.

Statistical data from The Statiscal Institute of Jamaica (STATIN) was also utilized. This information was obtained through an interview conducted and via the website.

The researcher also made use of the internet and other secondary sources of data such as articles which provided helpful information and contributed to the success of this assignment.

Types of Unemployment
In Jamaica unemployment can be categorized into three Main classes under which other types are formed: 1) Frictional Unemployment Casual Unemployment Search Employment

Seasonal Unemployment

2) Structural Unemployment Regional Unemployment Technological Unemployment

3) Cyclical Unemployment

Frictional Unemployment
This is voluntary or transitional unemployment due to people moving between jobs.

Casual Unemployment
This refers to short periods of unemployment between jobs.

Search Unemployment
Newly redundant workers, graduates or persons just entering the labour market for the first time such as graduates take time to find jobs at wage rates they are prepared to accept.

Seasonal Unemployment
Seasonal variations of certain types of industries result in workers being laid off in certain types of industries at certain times of the year.

Structural Unemployment
A total change in the demand from one product or service to another because of consumers` tastes or because one product is superior to another in some ways.

Regional Unemployment
This is the structural unemployment as it affects a particular area of the country or the region.

Technological Unemployment
This refers to unemployment resulting from the adoption of technological strategies.

Cyclical Unemployment
Local industries that normally export would need to cut back production, and in order to save costs, lay off workers.

What is Unemployment?
Unemployment takes place when jobless people have been actively seeking employment within the past four weeks according to the International Labour Organization (ILO). Also, people who were temporarily off and are waiting to be called back to that job are counted as unemployed.

Causes of Unemployment
There are many causative factors of unemployment in a burdened market economy like Jamaica`s. Unemployment can be caused or heightened by technological advancement, lack of qualification, economic slumps or recession, individual perceptions of some jobs, low consumer demand for certain products, discrimination in the work place and accessibility for retraining and acquisition of work skills, unavailability of jobs in specific expertise.

Cunningham A.(Thursday September 6,2012),Unemployment Hell, The Gleaner. According to the article thirty-one-year-old Kanika Tomlinson did all the right things. A consistent high achiever, she pursued her dreams to the highest level, mastering her field. Yet, despite having a master's degree in law, specialising in international trade, development and business law from the University of Sydney, for the past three years she says she has been unable to get a job in her area of expertise and training.

Technological Advancement
Technological progress contributes to the high level of unemployment in the Jamaican Economy. Due to the fact that technology is taken into use, manual labour, i.e by people, is dismissed as technology increases the productivity of an industry in one (1) day when compared to manual labour exertions. An example of this is the Sugar Cane Factory in St.Thomas. A few years ago the entire factory was manually operated, however technological progress resulted in workers were replaced by computerized machines, leaving those persons jobless. Another example is the use of Automated Teller Machines (ATM).These machines can operate for 24 hours unlike humans. In Jamaica instead of waiting in a line to see a Bank Teller persons choose to use the ATM [Please see Index]. This eliminates the need for a bank teller, causing many persons to be laid off rendering them unemployed. In addition, in agriculture several persons used machetes to clear land and other things. Now there is one person operating one tractor. What happened to other who used machetes? Those persons are now unemployed due to increase in technological advancement.

Inadequate Education and Training Facilities


In an interview that was carried out by a candidate of the CXC examinations, Ms.Phyllis Wilks a Labour Force Statistician of STATIN,stated that one (1) of the main causes of unemployment in Jamaica is that a number of unemployed persons are not qualified to either offer themselves to other people or to create unemployment. This is due to the inadequate training and education facilities which make it almost impossible to acquire the work skills required for different jobs.

Other Causes of Unemployment


An exhaustion of bauxite can mean the industry has to be shut down as there is very little or no bauxite to export. This can cause thousands of persons to lose their jobs. In Jamaica there is a mismatch of skills and opportunities, i.e persons are qualified for jobs such as nursing, receptionists and other simple jobs but the ones available require high qualifications. High import bills for imported products create employment abroad at the expense of our domestic workers. However, workers in Jamaica, with that same skill are unemployed as there is no need for them since we already import the products. A small, local and regional market e.g. Jamaica limits production and therefore, the demand for labour. Food Franchises such as Mothers, Tastee and Juicy Beef limit their productions to Jamaica and dont multinationalize, hence, the demand for labour is limited.

Consequences of Unemployment
The main impact unemployment has on society and the economy is the productive power that it withholds i.e. any person who is unemployed could be doing something productive thus contributing to the economy. Mr. Martin Brown of STATIN stated that one effect of unemployment has on the economy is that the government has to provide for unemployed persons, which is an expense to the government when they could use the money on more positive things like creating jobs. It also reduces the level of income per household (personal income); it would be higher. In addition the country would experience reduced output. Miss Phyllis Wilks also gave her opinion. She said, It can lead to social unrest. The economic climate is worse and tourists would stay away because of the crime and violence in our country. This is in fact true as many persons turn to violence in order to get what they want if they cant afford it financially.

Whether Unemployment Contributes to High Crime Rates


3%

Yes No

97%

Figure 1: Pie Chart showing whether Unemployment contributes to high crime rates. Figure 1 makes reference to the response on whether unemployment contributes to high crime rates existing in Jamaica, 97% of the 30 persons of respondents believe that unemployment can lead to high crime rates. Unemployment can also lead to child labour. Children are forced into the working world to generate income to send themselves to school as well as to take of their family Trafficking persons may also be a consequence of unemployment. Some persons turn to trafficking as their last resort to get money in order to get the necessities of everyday life.

Individual Consequences
To a regular citizen who has been unemployed, unemployment is a major crisis. It not only makes him broke but it causes depression and loss of self esteem. Due to the loss of income, one experiences hardship and poverty. There are educated persons who are unemployed and their education is put to waste or they are just at home doing other things.

What is an Unemployment Rate? The unemployment rate measures the percentage of employable people in a country`s workforce who are over the 18.

Unemployment Rates of Jamaica


The Jamaican unemployed rates are calculated as the percentage of the unemployed labour force. This is the percentage of the labour force who are willing, able to work and have been actively seeking employment but are not employed.

Figure 2: Chart showing the fluctuating Employment rates in Jamaica


*Data courtesy the Statistical Institute of Jamaica (STATIN)

The Unemployment rate in Jamaica continues to fluctuate and experience percentage change as Jamaica submerges in the depths of economic crisis. Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Unemployment Rate 15.40% 15.90% 15.00% 11.50% 11.30% 9.90% 11.00% 12.4% 12.7% 12.8% Rank 70 62 132 115 125 122 131 162 166 169 3.25 -5.66 -23.33 -1.74 -12.39 11.11 19.1 2.4 1.8 Percentage Change

Figure 3: Table Showing the Percent Change in The Unemployment Rate.

Conclusion & Recommendations

In view of the seriousness of this monster called unemployment, it is important for the government and individuals to seek ways of dealing with it. While unemployment cannot be totally eliminated in Jamaica, it can be reduced by reforming our education system to the extent that in addition to academics, hands-on skills become compulsory for all students. This means that students in the humanities and social science should be made to acquire practical skills which will make them productive after secondary and tertiary education. Also, a culture of productivity should be created in Jamaica. This the government can do through public discourse. One sees this type of culture in the East (Japan and China) where people love work and have a sense of industry from childhood to old age. Additionally, economic dualism should be dealt with. Economic dualism is a situation in which one sector of the economy, for example, telecommunication is advanced while another, say, agriculture, remains undeveloped. It is imperative that the government and the rich start extensive farming in Jamaica, and of course this can create employment opportunities for many youths. Interest rate on loans should be lowered. If this is done, many Jamaicans may feel free to borrow money from our banks to set up businesses, thus creating jobs for others. Finally, the excessive consumerist tendencies which we have copied from some western countries should be jettisoned. This means we should consume what we produce, thereby pumping money into the local businesses, not only to produce but to expand their businesses to the point of employing more Jamaicans.

Interview Questions
1. How would you define unemployment?

2. What do you think are the main causes of unemployment in Jamaica?

3. If you were in charge of supplying and ensuring that jobs are being issued among citizens of the country, how would you go about doing this?

4. What effect do you think unemployment has on the Jamaican economy?

5. How do you think the government can help to overcome unemployment issues in Jamaica?

Questionnaire
As a fifth form student of the Wolmer`s Trust High School for Girls , an important requirement for the CXC Economics examination is the School-Based Assessment(SBA),which will contribute to the final examination grade. In order to complete the assignment, this survey is conducted to get your personal views on the effects of unemployment in the Jamaican economy.Please answer the questions below by ticking the boxes or filling the blank spaces. Thank you. PLEASE DO NOT WRITE YOUR NAME 1. Sex Male Female

2. What age range do you belong? 18-25 26-35 36-45 46-and up 3. How long have you been unemployed? 1-6 months 7-12 months 1-2 years Over 2 years 4. Have you applied for a job? Yes No 5. If yes, what is the main reason you were turned down? No space available Under qualified Criminal Record (s) Other _____________

6. Which of the following do you believe contributes mainly to unemployment in Jamaica? Limited jobs Lack of Education Idleness Low Wages Other ______ 7. Would you agree to be retained in order to obtain a better job if you had the opportunity? Yes No 8. Do you think the government is to be blamed for the high level of unemployment in our economy? Yes No 9. Do you believe unemployed persons are ? Comfortable being unemployed Waiting on the government to issue opportunities Taking measures to become employed Other________________________________ 10. What measures are you taking in order to survive being unemployed?

Automated Teller Machine (ATM)

Picture Depicting Child Labour

WOLMERS TRUST HIGH SCHOOL FOR GIRLS

ECONOMICS
PAPER 03 GENERAL PROFICIENCY

SCHOOL BASED ASSESSMENT Name: Registration Number: Center Number: Waynette Strachan 1001294499 100129

Statement of the Problem

The Effects of Unemployment on the Jamaican Economy