 Unemployment Rate: Concepts and IndicatorsMPRA Paper from University Library of Munich, Germany Abstract: Unemployment is a central indicator in macroeconomic analysis, reflecting both the performance of an economy and the well-being of its population. This paper examines unemployment from theoretical, empirical, and policy perspectives, with a particular focus on the Republic of Moldova. It begins by defining unemployment and its role as an economic and social indicator, followed by an overview of key theoretical frameworks, including Classical and Keynesian perspectives, the natural rate of unemployment, NAIRU, and the Phillips Curve. Various types of unemployment—frictional, structural, cyclical, and seasonal—are analyzed alongside methods of measurement such as labor force surveys and the employment-to-population ratio. The paper identifies major causes of unemployment, ranging from economic downturns and technological change to globalization, skill mismatches, and demographic factors. The consequences are explored in economic terms, such as GDP loss measured by Okun’s Law, and in social terms, including poverty, inequality, and political instability. Policy responses are discussed, including fiscal and monetary measures, education and training programs, active labor market policies, and structural reforms. A case study of the Republic of Moldova provides insight into recent unemployment trends, underlying causes, and the effectiveness of government responses. Emerging challenges—such as the impact of artificial intelligence, the rise of green jobs, global economic uncertainty, and labor mobility—are examined to assess the country’s future labor market trajectory. The findings highlight that unemployment is a multidimensional issue requiring integrated strategies that balance economic growth, social inclusion, and environmental sustainability. For Moldova, success will depend on its ability to strengthen domestic job creation, enhance workforce skills, and reduce dependence on external labor markets, thereby ensuring a resilient and inclusive labor market in the face of global change. Keywords: Unemployment; Labor Market; Republic of Moldova; Economic Growth; NAIRU; Phillips Curve; Okun’s Law; Labor Mobility; Automation; Green Jobs; Fiscal Policy; Active Labor Market Policies; Globalization; Skill Mismatch; Economic Uncertainty (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:125701 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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