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Essay / Research Paper Abstract
This 3 page paper discusses the impact that unemployment can have on the performance of the company. The paper looks at the general unemployment trends between 1990 and 2007, and more carefully at the monthly figures for 2006 and 2007 in order to assess the impact that the levels may have on the Apollo Group Inc., a company providing education services. The bibliography cites one source.
Page Count:
3 pages (~225 words per page)
File: TS14_TEunemploy07.rtf
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Unformatted sample text from the term paper:
indicator, indicating the way in which the economy is moving. Increases in unemployment are likely to result in lower levels of disposable income and a higher level of reliance on
welfare payments. In turn, this can place pressure on to state and federal welfare programmes that provide the funding. Rising unemployment may
also be seen as an indicator of potential recession. If unemployment increases there will be less disposable income moving around in the economy, and the velocity of money movement is
likely to slow down. This will reduce the demand for goods and services, which in turn will reduce the demand for labour to provide that goods and services creating a
negative cycle. Where unemployment decreases the economy is likely to benefit from more money being put into the economy and stimulating demand which
in turn creates more jobs. The key is not only assessing the level of unemployment but the relative changes over a period of time.
By looking at the patterns of unemployment between 1990 and the current time it is apparent that the unemployment matches the economic cycles which have been seen. In figure
1 the unemployment level is shining with the pink bands showing the periods of recession. Unemployment figures can be reported in two ways, an adjustment and seasonally adjusted. This is
because unemployment had to take place in cycles, with some points in the year having a naturally higher level than others. We are looking at the seasonally adjusted figures at
this reduces the potential of a misunderstanding or misinterpretation due to seasonal rather than seasonal or macroeconomic conditions. Figure 1; Seasonally adjusted unemployment figures 1990 - 2007 (Economagic, 2007).
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