Economics Q's on Emp. Associations and Rising Unemployment (1 Viewer)

[x.Exhaust.x]

I need some assistance with the following questions :

Employers Associations

1. What are they?

Employers are associations are groups of people that give advice to employers e.g. The ACCI (Australian Chamber of Commerce and Industry)

What type of advice do they give? (Just to expand on my answer and be more clear)

2. What is their role?

Their role is to maintain the profitability and competitiveness of members' business or industries

Any other answers or simpler terms?

3. Discuss three costs to an economy of rising unemployment.

Thanks.

 

[x.Exhaust.x]

Hmmm *sigh* no help.

 

[hahahayley]

you'd probably get more response by posting this in the hsc eco. this is a response from a task i had last year and i'm thinking it will only help you with the first question.

EMPLOYER ASSOCIATIONS
Similar to trade unions in that they represent groups of people in similar industries, employer associations differ in that their membership is comprised of employers rather than employees. Employer associations such as the Business Council of Australia and the Australian Industry Group aim to have a single voice in regards to industrial relations matters.
While trade unions protect employees in negotiations, employer organisations protect the employers hence the support they gave to the Workplace Relations Amendment Act 2005. The relaxing of government laws and regulations due to the deregulation to be caused by this Act would enable employers to gain more flexibility and possibly more profitability. As employer organisations aim to protect the best interests of employers they generally tend to maintain the competitiveness and profitability of their members’ business or organisation.


Employer associations are capable of affecting the labour market equilibrium by raising their demand for labour. When the demand for labour increases the new labour market equilibrium forces up the wage rates.

eco costs for UE can include more pressure on welfare etc, deteriorating skills.

 

[kaz1]

For question 3
1. non acclerating inflation rate of unemploymnet (NAIRU)
2. Slowdown in economic growth
3. Decreasing intrest rates ( I dunno if you can use this since it is from Finnancial Markets)

btw I think your class might be a bit behind because we are up to financial markets and the teacher said we have to work our butts off to be halfway towards where we're supposed to be.

 

[jaychouf4n]

Question 3.

Rising unemployment means fewer workers to make goods. This means fewer goods, continuing cycle. So basically rising unemployment when left untouched becomes a never-ending cycle. (when all other variables are constant; i.e. demand of goods)

Furthermore when unemployment rises and fewer goods are made, it means the supply of the good falls. This means the equillibrium demand is lower than before while the price is higher. So in general, the prices of good rises and people are unable to buy as much of what they demand.

By extension of this it means that the overall satisfaction is lower.

Rising unemployment is an internal diseconomy of scale, thus the average costs in general rises, which limits profits for companies, limiting expansion for the company. In combination with the previously mentioned lower demand, it means that R&D and expansion becomes less attractive which leads to a falling in the GDP.

Etc Etc

I guess just flesh these points out and you've got an essay

P.s. Thanks for that, I thought the question was simple, but it made me realise I'm low on economic jargon

 

[x.Exhaust.x]

Thanks guys. And kazi, can you explain what the NAIRU plan is? We never covered that in class .