Discussing Unemployment INSIDE A Theoretical Perspective Economics Essay

Unemployment is happening which happens whenever we find people available without work. It is a big sociable and financial problem which is very common nowadays in growing and developed countries; Unemployment is usually assessed using unemployment rate. Unemployment in Abu Dhabi is sensation which has many rates, reasons and results.

Before the self-reliance of the U. A. E. , The economy was under basic financial control. Sportfishing and little agriculture were in use as the primary activities in UAE. Along with the breakthrough of oil UAE's economy expanded and the olive oil sector displayed more than 35% of UAE's GDP. In 2005, the U. A. E. produced about 2. 4 million barrels per day, 85% of it was Abu Dhabi's own product. The essential oil income permitted the government to spend charitably on infrastructure, education, and job creation. The ascending of engine oil prices in the 1970s provided the Gulf Assistance Council (GCC) countries with the financial money which made vast economical development programs that required invasion of non-national labor available. However, the slump in olive oil prices in the middle 1980s and the inhabitants' growth made unemployment an issue in GCC countries. This project assesses unemployment in the UAE and steps the unemployment rate in Abu Dhabi; the capital of the United Arab Emirates.

As for the start, Unemployment is the incapability for employees who want to find profitable employment. The extent of unemployment in a nation is an indication of the economic strength of that country. Many triggers can negatively impact the unemployment rate keeping track of corporate downsizing, mergers, implementation of automation technology, and job outsourcing to other countries.

UAE unemployment generally

Unemployment in the UAE is seen one of the cheapest in the world (Kawach 2002). It was initiated to be 2. 4 percent by the finish of 2001, where the estimated work force was around 2. 1 million and 2. 0 million were employed. Due to the increase in population and the expansion in the amount of nationwide graduates from universities and advanced schooling schools, unemployment along with nationals converted into a sensitive problem in latest years.

Unemployment in the UAE has severe harmful effects on the modern culture and the overall economy as well. The government will be under political force. It will spend more on cultural repayments. The market will be wobbly and prosperity misallocated. Because of this, the government arranged a fresh labor insurance plan to situate nationals in civic and private department jobs, which were up until that time overflowing by non-Emiraties. This plan alerted over a fussy sector, such as finance, in order to perform an aim of thirty percent nationalization. Based on the Ministry of Planning, the number of working nationals didn't surpass 9 percent of the total labor force in 2003. This shows the lack of the proper qualifications of nationals to be competitive labor market requirements. To be able to defeat this structural crisis in the 2 2 labor market, the government requested the educational foundations to put up the shutters of the breach between academics series and labor market through convenient and special schooling. Unemployment in UAE is set in the middle of junior, where more than 50 percent of entire unemployment is including those with an intermediary level of education and low degree of expertise.


Labor Force

We ought to know which people needs job and which don't in order to judge the opportunity of the unemployment problem. A lot of people don't have a job but people such as those are not part of our problem. Students which review in full-time bases aren't among the work force which is defined as People between 16-65 who are in fact working plus those who aren't working but actively searching for a job. For example, old people who live through their retirement aren't considered as part of a labor force. Furthermore, prisoners who condemned in jail are not among the list of labor force. Housewives are not an integral part of the labor force unless of course they seek employment. Nevertheless, children under age 16 who are actually worried about their play place are also not regarded as parts of the work force. So, actually labor force is approximately people who look for a paid job outside their homes which does mean that folks working voluntarily are not considered as part in the work force.

In the other side, individuals who are neither employed nor actively searching for a job are called nonparticipants. In work force we count both employed and unemployed people who seek careers.


The amount of the full total of no institutionalized and citizen society over 16 years of age, we count them citizen labor force.

The labor force participation rate is actually add up to the percentage of citizen work force to the total of no institutionalized citizen society over 16 years old. To calculate the work force participation rate we used the info that obtained along with other work force data from the monthly current population study conducted by the Bureau of the Census for the Bureau of labor figures.

Labor force

participation rate



labor force

total no institutionalized

civilian population

Labor drive growth

Figure: P1. a (NOT real just assumption to make it better to be realized for a reader)

Since the work force is growing each year and the populace increases with continuing immigration as well, this will increase the production possibilities which cause us to produce more job vacancies atlanta divorce attorneys year. That's such a poor information because then we will have to produce almost millions of jobs more yearly to close up the gap. Once the economy detects itself unable to provide careers to the increasing populace UNEMPLOYMENT will be confronted as a significant issue. UNEMPLOYMENT has several meanings; one of the explanations is the individuals who are searching for employment and can't find it through a precise sum of energy. Unemployment can be weighed up through dissimilar ways. One of these is taking in thought the total amount of individuals who are employed and the ones who are fired.

(http://en. wikibooks. org/wiki/Macroeconomics/Definitions_of_Unemployment)

Measuring Unemployment.

Measuring Unemployment is one of steps that assist us to review, analyze, evaluate and put solutions for this occur, economics are the most people who concentrate on the unemployment rate. A main reason behind this occurs is the standard increase in the quantity of people applied due to society and work force increasing. Information of the unemployment provide a variety of purposes, we need some information which necessary to macroeconomic and recruiting development planning and coverage formulation, this information like steps of labor supply, the composition of occupation and the extent to which available labor is really utilized.

Data Sources of Measuring Unemployment :

Administrative Records

Statistics of unemployment can be drown from supervision records, in this way we can registration data which derived from records are based on complete counts, so they'll not afflicted by sampling errors, in addition they are cheap to obtain. But also this way is limited because it only cover small part of the human population which uses occupation exchanges or is qualified for unemployment insurance benefits.

2. Household Surveys

In this source statistics of unemployment can also be obtained from household or labor force surveys, this study composed sample of home and asking people of working age about their career activities and also about availableness for work by using standard questionnaire. In this manner also was limited since it is dependent only on dynamics replies of men and women in the household survey, so that it will is made up of many different kind of mistakes.

Reasons of unemployment.

Discouraged workers

In economics, a discouraged staff member is someone between 16 and 65 yrs. old who's not keenly looking for employment. This usually happens because the person has given up searching or has had no accomplishment to find a job, which explains why he's called "discouraged. " His opinion may be obtained from a mixture of factors keeping track of: a lack of careers in their area or line of work; apparent discrimination for reasons, for example, years, race, love-making and religion; too little required skills, training, or experience; or a impairment.

Discouraged employees, who are grouped as "marginally mounted on the labor force", "on the margins" of the labor force, or as part of "hidden unemployment", aren't thought to be to be component of the labor force and are therefore not counted generally in most established unemployment rates, which persuades the surface and description of unemployment information.

(http://en. wikipedia. org/wiki/Discouraged_worker)


The manifestation underemployment has three different independent meanings and functions. All meanings involve a state in which a person is working, unlike unemployment, where a person who is looking for work but cannot find it. All meanings entail underutilization of labor that critics say [weasel words] is neglected by a huge amount of public (governmental firm) classifications and measurements of unemployment.

Underemployment often means

The employment of recruits with high skill levels in small wages occupations that not require such skills, for example a tuned physician who works as a taxi driver.

"Involuntary part-time" workers who want to be working for a complete time work but can only hit after part-time profession.

"Overstaffing" or "hidden unemployment", the practice where businesses provide work for individuals who are not completely occupied---for example, personnel at present not being used to produce goods or services anticipated to legal or communal limits or because the work is highly seasonal.

(http://en. wikipedia. org/wiki/Underemployment).

The Real human Cost of Unemployment

The unemployment causes the individual cost, and there are many kinds of human costs.

Because we are part of this world, we should accept that we now have casualties caused by unemployment and really should be affected by losses.

All the people going through these problems, but not all of them have ways to solve it.

For the Psychological Research of psychological problems and disorders multiple goes by by individuals therefore of these negative experiences and a few of these psychological studies to say discussion that the mental health symptoms continue even following the economy boosts which leades for men and women's problem to get started on getting worse.

This stigma makes them away and cautious from the population, and perhaps makes them more faded. This escalates the psychiatric unit that is the beginning of your mental health disorder at the other, and resorts of ignorance or desperation to alleviate the pain do not like initially, including drugs or alcoholic beverages. After an extended period of self applied starts Bloom, hates itself in a way that we cannot consider. This ball will be circulated again and you will be the beginning because the hate of others and resent them. . , and the most severe may retaliate against them (meaning the idea changed to negative behavior or legal. . . etc.

Moreover, the negative aspects in the habit for the unemployment people are sleeping for a long times and they become insufficient sense with time or cultural and personal responsibly.

The work make the person feel of his own personality and his impotents in the contemporary society and when he lost it he believe that he lost his public life and his personality as well.

Full Employment

It is clear that full career is one of your major Goals in a country's market. Additionally it is logical that there is no any such thing as (zero unemployment). That is why the term, Full Occupation, is transported by other factors. In fact, There are a few reasons why full job zero unemployment.

Seasonal Unemployment

Seasonal unemployment is thought as unemployment caused by a show up in aggregate demand in some economic areas (and not the economy as a whole). It could see some economical sectors (former mate. tourism as a sector, agriculture, or fishing), cycles of recession, resulting in loss of workers in these sectors to their careers temporarily.

Frictional Unemployment

It is a short-term cessation of work because of the transition in one job to some other, or pause to find another job or even to study and so on.

Structural Unemployment

Economists often use the term "structural unemployment" for employment problems that arise because of a mismatch between your needs of employers and the abilities and training of the labor force. For example, if music institutions were to teach a lot more oboe players than could get positions participating in the oboe, we might find that lots of of them would have to get careers in other areas. Missing training for other skilled domains, some oboe players might struggle to get any jobs at all. This would be an instance of structural unemployment.

Structural unemployment boosts some questions. If an oboe player were offered employment as a disk jockey, at very good pay, and refused the work because it was not the field for which he was trained, what should we make of that? May be the oboe player really "prepared to work at the heading wage?" Or should we consider the would-be oboe player as being out of the work force --unwilling to work in the opportunities available to him?

On the other hands, people who have little in the way of training undergo more than average unemployment in almost all of the industrialized countries. This shows that structural unemployment is actually quite an important problem in the industrialized countries at the end of the twentieth century.

Cyclical Unemployment

It is the unemployment resulting from the volatility of aggregate demand in the economy, where current economic climate is facing durations of low aggregate demand, leading to the increased loss of area of the workforce functions and therefore; a higher unemployment rate throughout the market. But it starts off to decline when demand begins to rise again overall.

The natural rate of unemployment

scientists have arranged that the natural rate of unemployment or as they call IT, full career, the pace of unemployment between 4 to 6%.

UAE Unemployment

The oil price increase of the 1970s resulted in vast economic development programs in the UAE and a lack of national labor who are mainly used in the public sector causes to dependence on foreign labor

In 1980 there have been more than 80% career in the use and most of them were non countrywide.

In 1986, the dropping oil manufactured in United Arab Emirates to the high unemployment rate for the non national and it climb the number of the unemployment nationwide people they visit a job.

In doing research in the 2003 show that we now have 2. 4 per cent is well prepared for total unemployment in the UAE countrywide and non nationwide, either at another level, the unemployment rate on the list of national folks of the State is 10. 4, it's also shown The unemployment rate for females than men, where in fact the percentage of women compared to men, 16. 5 percent and accounted for 8. 4

The unemployment in UAE has a whole lot of negative effects on the modern culture and the economy

As a result of the side effects of unemployment in the UAE culture government made a decision to draw up laws that employ people in public areas areas for both.

Based on the lack of sufficient certification of national have asked the state educational organizations n upgrading the amount of education among students in order to reduce the advanced of riparian State

Estimating Unemployment in Abu Dhabi

The United Arab Emirates gets the least expensive rate of unemployment of only three percent between its residents on the Arab words.

Dr. Khalid Al Khazraji, Under-Secretary of the Ministry of Labor and Social Affairs, has said that the unemployment percent between UAE citizens go beyond three percent. On the other hand he observed that the united states is nearly lacks a lot of statics on the size of the unemployment between UAE individuals. This rate is actually calculated prediction which the governments build its strategies and stratagems for the job of the UAE nationals in the public and privets sectors. However the truth remnants that the effect of the UAE people to the private sector still poor for many reasons, some approved to the unwillingness of nationwide job seekers, while some to the unwillingness of companies.

Although the unemployment rate in 2004 was about 20. 60%, but this percent of the unemployment doesn't have an impact on the UAE's position.

The Survey

Here is a simple survey evaluation which can be used to guess the unemployment rate in Abu Dhabi. And the questionnaire is marketed for the geographical part of Abu Dhabi.

Actually the survey obtains the needed information on age, sex, level of education, family size, employed and unemployed family, and why they are not employed, duration of unemployment, and types of jobs preferred.

However the review has been conducted by many ways such as email distribution, phone cells, and personal interview on 500 young families And the face rationality of federal government representatives from the Ministry of Labor.

The sample we selected it was rely upon Cranach's Coefficient Alpha(0. 83), the degree of self-assurance of the sample survey is examined using t- statics that happen to be averaged 2 at 0. 05 level of assurance. For the other statistical exhibits were assessed such as frequency, mathematical average, and percentages.

Results and analysis

The results that are computed from the delivered survey are shown in Stand 2. The unemployment rate along with nationals in Abu Dhabi was found to be 16 percent, which is superior to the official approximations of 10. 4 percent and 6. 5 percent for the UAE and Abu Dhabi in that order. This is because somewhat to the small trial size, and can be clarified by the diverse techniques used for diagnosis, and the reality that many individuals who have members that are at working age were barred from the work force because these were not actually looking for jobs or were regular economically by interpersonal aid from the federal government or from unmitigated individuals. As anticipated, the effect shows a high percentage of nationals that favor working at general population sector managerial careers, which will enlarge the unemployment rates. The research proposes that unemployment rate is tend to boost for most explanations, like the amplified volume of graduates, the quality of education which market demand will not meet with, and the task area at the private sector with value to working hours and close performance sizes which does local people are not attracted to. Finally, nationals still do not allow certain careers because of modern culture or that the jobs aren't socially tempting.


The examination suggests enhancing the educational and training system to fit labor market requirements. It is also suggested to create more exact and modernized data on the labor market including (job seekers, employers, and job opportunities), and to find out more to be provided and an educational marketing campaign to be completed to improve the methodology of the UAE teenagers in the direction of working at the private sector. Further research is needed to revise the impact of unemployment on UAE overall economy, women contribution in the labor force and recognizing careers favored by them, and measuring nationals' efficiency weighted against compared to that of the expatriates, and finally restudying the labor regulation and guidelines in light of globalization and new scientific expansions.


Kqwach Nadim (Dec. 8, 2002), "UAE Unemployment one of the cheapest" UAE Economic,

Abu Dhabi.

MENA Development record (2004), "Unlocking the Work Potential in the Middle East

and North Africa. Toward a Public Contract". THE GLOBE Lender, Washington,

D. C.

UAE Ministry of Planning 2004, UAE, Abu Dhabi.

Muwia E. Ilbrahim, (Jan. 22. 2004), "Unemployment Spirals among UAE" Nationals, Khaleej Times Online.

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