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Reasons for Higher Unemployment Rate in One Country vs. Another


Explain two reasons why the unemployment rate may be higher in one country than another.



Preview Answer


I. Introduction
A. Definition of unemployment rate
B. Importance of understanding reasons for differences in unemployment rates between countries

II. Reasons for higher unemployment rates in one country compared to another
A. Lower total demand and cyclical unemployment
1. Explanation of cyclical unemployment
2. Impact of recession on unemployment rates
B. Lower labour mobility and structural unemployment
1. Explanation of structural unemployment
2. Impact of lower labour mobility on unemployment rates
C. Greater pace of technological advancement and structural unemployment
1. Explanation of technological advancement and its impact on employment
2. Impact of technological advancement on unemployment rates
D. Greater voluntary unemployment and higher benefits
1. Explanation of voluntary unemployment
2. Impact of higher benefits on unemployment rates
E. Labour force growing faster than economy and shortage of jobs
1. Explanation of labour force growth
2. Impact of labour force growth on unemployment rates
F. Lower education standards and employability
1. Explanation of education standards and employability
2. Impact of lower education standards on unemployment rates
G. Labour market restrictions and cost of employment
1. Explanation of labour market restrictions
2. Impact of labour market restrictions on unemployment rates

III. Conclusion
A. Recap of reasons for differences in unemployment rates between countries
B. Importance of addressing these reasons to reduce unemployment rates
C. Call to action for policymakers to address these issues.

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