Comparing Unemployment Rate

 

 

 

 

 

Student’s name

Instructor

Course

Date

Unemployment Rates

Introduction

Unemployment is considered a circumstance where an individual who actively searches for employment cannot obtain a job. Mainly, unemployment is utilized as a measure to determine the state of the economy. The unemployment rate is the most common measure and determines the number of unemployed individuals divided by those in the labor force. One thing to understand is unemployment is a critical economic indicator. It shows the capability of employees to acquire lucrative jobs to add to the product output of the economy. A country with a high number of unemployed workers has less economic production. Furthermore, a country with high unemployment rates has low output without a proportional reduction in essential consumption. This paper features unemployment in various countries, including Kuwait, Australia, UAE, and Bahrain.

Unemployment rates

1. Kuwait

In Kuwait, the unemployment rate determines the number of active people searching for a job as a degree of the labor force. Kuwait’s unemployment rates have been different from 2014 to 2018 (The World Bank, 2020). In 2014, the unemployment rates were at 2.9%, which records an increase from 2.55, recorded in 2013 (The World Bank, 2020). In 2015, unemployment rates decreased to 2.2%. The rates of unemployment in 2016 were found to be 2.11%, while 2017 recorded a decline of 0.03% by registering 2.08% (The World Bank, 2020). In 2018, the unemployment rates were at 2.06% (The World Bank, 2020). From the statistics, it is evident that unemployment rates have decreased slightly for the period between 2014 and 2018.

2. Australia

According to the Australian Bureau of Statistics, the unemployment rate for 2014 was 6.1%. However, the rate increased to 6.4% in January 2015, with the number of employed people decreasing by 12200. In 2016, the number of working people decreased by 200, with the unemployment rate remaining steady at 5.7%. Besides, the participation rate was maintained at 64.8%. According to ABS, the unemployment rate in 2017 was 5.5%, which indicates a decrease in the unemployment numbers. When compared to October 2016, full-time employment increased by 289000 people. The participation rate was 65.2%. The unemployment rate in 2018 was recorded at 5.4%, which was a decline from the previous year. The statistics prove that Australia’s unemployment rates for the period 2014 – 2018 have been decreasing (ABS, 2018). Therefore, more people are acquiring employment.

3. UAE

In 2014, the unemployment rates were at 2.44, which was a decline from the previous year by points of 0.38%. Therefore more people obtained jobs in 2014. In 2015, the unemployment rates declined slightly, with points of 0.43% by recording 2.44%. In 2016, the unemployment rates were at its lowest at 1.64%. This year had the most significant number of employed persons. In 2017, however, the number increased to 2.46%; therefore, the year recorded a large number of unemployed persons (Trading economics, 2020). In 2018, the unemployment rates were 2.57%, which increased the number of unemployed persons. From the statistics, it is evident that the unemployment rates have been changing annually.

4. Bahrain

The unemployment rate in 2014 for Bahrain was 1.14%, which is a decline from the previous year. In 2015, data collected showed that the unemployment rates are at 1.08%, which decreased; thus, more people were employed. In 2016, the unemployment rates were recorded at 1.01%, while that for 2017 was at 0.95% (Statistica, 2019). In 2018, the unemployment rate was recorded at 0.96%. From the statistics, the unemployment rates have decreased; therefore, more people acquired employment.

Unemployment rates based on economic sectors

Kuwait

1. Retail sector

In 2014, the retail sector decreased the unemployment rate compared to the previous year. This is because the employment rate in 2013 was recorded at 2.34%. After data was collected in 2014, it was found that the employment rate had fallen, therefore, increasing the rate of unemployment by points of 0.05%. Consequently, a significant number of people were unemployed in the retail sector (Statista, 2020). In 2018, the unemployment rate also increased as more people did not work in the industry. This is because the employment rate decreased from the previous year, with 0.05% points.

2. Banking sector

This category falls under services, and as such, the statistics depicted in 2014 that the unemployment rate had decreased in 2014 compared to the employment rates in 2013. In 2013 the employment rates were at 72.73% while in 2014 at 72.77%, which increased by 0.04% (Statista, 2020). This, thus, depicted that a significant number of the population worked in the service sector. In 2018 the unemployment rates also decreased, which is demonstrated by an increase in employment rates. In 2017, the employment rates were at 73.36% while in 2018 at 73.44%, which depicts an increase of 0.08%.

3. Finance Sector

This category falls under the industry group. In 2014 the unemployment rate decreased as the employment rate increased from 24.93% to 24.94%.  Therefore, depicting that more people were employed in the industry (Statista, 2020). In 2018 the employment rates decreased; therefore, more people were left jobless. This is the case because the employment rate in 2017 was at 24.51% and 2018 at 24.50, thus, showing a decline of 0.01% points. In other words, the unemployment rate in the industry increased.

UAE

Retail sector

The UAE recorded an increase in employment rate, with 10% points increases compared to the previous year in 2013. This is the case because if the steady rise of job opportunities due to a diverse and improved economy. The total number of workers in the nation amounted to 4417000 with 1,050,000 workers occupying the retail sector. This number amounts to 34% of the total employment.

Banking Sector

The number of employees intensifies by 6.2% in 2015 for all commercial and Islamic banks (Statistics Centre, 2015). Nevertheless, the number of workers reduced by 3.9% in the first section of 2015 when distinguished with the fourth quarter of 2014.

Finance Sector

The employment rates in 2014 for the financial sector increased by 18.6%; therefore, more people offered financial services. Thus, the unemployment rate in the industry had declined.

Bahrain

Retail Sector

The overall economic growth in 2014 was 4.5%. The retail sector mainly grew by 4% in 2014. Data and statistics depict that the sector contributed $1.4bn to the Gross Domestic Product for the year. One thing to understand is that the retail market accounts for malls and e-commerce (Oxford Business Group, 2020). Statistics depict that the retail sector will grow tremendously in the years to come because of online shopping.

 

Banking Sector

The employment level in this sector increased in 2015 by 1.1%, with a total number of 7553 people compared to 2014, which had 7473 people. There was an increase in the employment level due to the non-bank financial sector involving investment business firms, financing companies, money changers, and insurance firms (Arabian Business, 2016). This sector was found to increase job opportunities in the country with 5.1% points.

Finance Sector

Employment in financial services in 2014 was accounted to amount to 13496. In 2015, the number increased by 2.8%, amounting to 13877 people (Arabian Business, 2016). According to the Central Bank of Bahrain, the total workforce in financial services was 8888 people, while 2015 had a total of 9040 people.

 

Australia

Retail

The retail sector in Australia has served as an entry point in the labor force mainly for those that desire flexibility. The sector is a massive employer, which amounts to the largest employer in the country. In 2013, the sector offered 19.3 million job opportunities (Sectoral Policies Department, 2015). In 2014, the retail sector employed over 1.2 million people, which amounted to 10.5% of the Australian workforce.

 

Finance

The financial sector offered jobs to about 411700, equivalent to 4% or the total labor force. The employment level in 2014 rose by 0.2% points. One thing to understand that employment is more concentrated in the capital cities where most financial companies have their headquarter

Banking

The financial and insurance institution offer job opportunities to 4% of the total working population. The employment level has intensified in the last five years by 23.9% (Australian Government, 2020)

4. Comparison

Kuwait

From the statistics, it is evident that unemployment rates have been decreasing slightly for the period between 2014 and 2018. Therefore, the economic position of the nation has been growing significantly as more people work.

 

UAE

The statistics depict a rise and fall trend in the unemployment rates. This indicates that the economy of the UAE is subjected to fluctuations where it rises and falls. This is guided by the changes in the employment levels in the country.

Bahrain

From the statistics, the unemployment rates have decreased; therefore, more people acquired employment. This trend depicts that the economy has been growing as more people participate in the labor force.

Australia

The data collected depicts that the unemployment rates have decreased; therefore, the employment level has increased. This trend shows that the economy has been growing as more people participate in the labor force market.

5. Selection

Student 1

The retail sector in Australia because of the available job opportunities in the segment. Besides, the industry provides flexibility, thus, offering a chance to engage in other constructive activities.

Student 2

I would wish to work in the retail sector in Bahrain, mainly because of online marketing’s future potential. Therefore, acquiring a practicum in this segment will offer an opportunity to grow my marketing skills and strengthen my knowledge base on online shopping.

Conclusion

Unemployment rates are an essential measure in the economy as it helps a country determine its financial position. A country that offers job opportunities to many people is set to have an increase in economic growth. In other words, high employment levels depict a stable economy.

 

Student 3

I would like to engage in Australia’s financial sector because of the bright future that the industry offers for the country. This is the case because of the new job opportunities provided by the non-bank financial sector, such as insurance. Acquiring a practicum in this sector will offer a chance to grow and progress in financial services.

 

 

 

Bibliography

ABS, 2018. Labor Force, Australia, Jun 2018. [Online]
Available at: https://www.abs.gov.au/ausstats/abs@.nsf/lookup/6202.0Media%20Release1Jun%202018

Statista, 2020. Kuwait: Distribution of employment by economic sector from 2009 to 2019. [Online] Available at https://www.statista.com/statistics/438879/employment-by-economic-sector-in-kuwait/

Statistica, 2019. Bahrain unemployment rate from 1999-2019. [Online]
Available at: https://www.statista.com/statistics/525459/unemployment-rate-in-bahrain/

The World Bank, 2020. Unemployment, total (%of total labor force) (national estimate) Kuwait. [Online]
Available at: https://data.worldbank.org/indicator/SL.UEM.TOTL.NE.ZS?locations=KW

Trading economics, 2020. United Arab Emirates Unemployment Rate. [Online]
Available at: https://tradingeconomics.com/united-arab-emirates/unemployment-rate