Unemployment in Brazil after the Financial crisis of 2008 Essay

Unemployment in Brazil after the Financial crisis of 2008 - Essay Example The tax cuts made the corporations use the money to keep already employed and even hire new ones despite the harsh economic times. The actions though not much helped to lower the unemployment thereby saving the economy from collapsing. The trends witnessed in the year 2009 and 2010 shows unemployment lower in 2010 was lower than in 2009, on average it showed a decrease of 61% between the two years. Unemployment has a direct bearing on Brazil’s debt, at the time unemployment began to improve in 2009 – 2010 fiscal year, the country debt was on the decline, and trade increased and thus exports were up due to favorable climate to conduct business (Turner, 2012). Unemployment rate is the number of unemployed persons divided by the total labor force, where the labor force is the number of unemployed plus the number of employed persons. Employment rate measures the percentage of employable people in a country’s’ workforce who are aged 18 years and have either los t their job, or unsuccessfully sought jobs during the last month. This workforce is supposed to be actively seeking employment. Unemployment Rate =Number of Unemployed/ Total Labor Force. Unemployment rate in Brazil is averaged 8.84% from 2001 to 2013, reaching an all time high of 13% in 2004 and record low of 4.60% in December 2012 (OECD, 2013). In Brazil, unemployment measures the number of people actively seeking employment as a percentage of the labor force. This is measured monthly in the major metropolitan cities of Brazil. The  summary is as represented below: Table 1 Brazil metropolitan areas 2003 -2009 Unemployment Rate in Percentage points Year Recife Salvador Belo Horizonte Rio de Janeiro Sao Paulo Porto Alegre Curitiba Total 2003 13.8 16.7 10.8 9.2 14.1 9.5... This essay offers a modern analysis of the issue of unemployment in the Brazilian economy and reviews federal measures, introduced by the government to fight this problem. The international financial crisis after the 2008 September had a considerably negative impact on Brazilian economy, leading to a significant increase in the unemployment level. Unemployment is the situation arising from a willing and able person to undertake paid work responsibilities, being unable to get a job. There are several classifications of unemployment. Demand Deficient Unemployment occurs in recession or a period of low growth. Voluntary Unemployment happens when workers prefer not to work. Frictional Unemployment occurs when workers are in between jobs. Structural unemployment occurs as a result in inefficiencies in the labor market resulting from a mismatch of skills or geographical location. Classical unemployment occurs when wages are artificially kept high above the equilibrium leading to excess supply of labor Employment and economy are directly related in any country. Any change in the economy whether positive or negative, has an implication in employment. Brazil’s unemployment rate is seen on the decline thanks to federal measures introduced by the government. Programs meant to protect workers such as the expanded unemployment insurance were of great significance during the period of economic recession. Additional efforts were put in place aiming towards the sustained supply of credit and recovery of the growth trajectory of the economy.