Economic Growth and Employment
What are 2-3 relationships between unemployment and the economy? In any country unemployment and the economy are closely related. If the economy takes a drastic turn for the worst, employment will take a hit as well. With businesses trying to stay afloat in hard economic times they will lay employees off in order to try to save money. However, because of these layoffs people do not have money to spend which causes more of a problem for the economy. Brazil is no different, this happened to them about a year or so ago and the countries unemployment hit a high at 13.10 %,( Trading Economics, 2010).
Brazil took notice of this horrible loop and invested government money into the economy...
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.... By giving large corporations tax cuts and offering free training classes to the public the government was able to turn their economy around. (Pires, 2010) Corporations could use the money from the tax cuts to keep employees and even hire new ones. The free training classes offered people with little schooling a chance to gain experience and have a better chance to obtain employment. These actions have lowered the unemployment rate and helped the economy.
What trends are seen in the data sets? According to a table posted by Trading Economics, (2010) unemployment in 2010 was lower than the unemployment in 2009. Once all the data is averaged for each year it shows a .61% drop between the years. By looking at Brazil’s economy in graphs it is easy to see that the unemployment is directly related to the economy. (Charting Brazil’s Economy, 2009) At the times that unemployment started to improve the countries debt was on a decline, trade was up, and exports were up.
The statistical evidence supporting the assertions of the trends is within the charts and graphs below. The Brazil unemployment rate from January 2009 to January 2010
Brazil’s debt declining.
Brazil’s trade and exports rising.