indicators and measurement for performance gene chang
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Indicators and measurement Indicators and measurement for performancefor performance
Gene ChangGene Chang
Economic stabilityEconomic stability
Job opportunities: measured by the unemployment rateJob opportunities: measured by the unemployment rate
Stable prices: measured by the inflation rateStable prices: measured by the inflation rate
Major indicatorsMajor indicators
Employment and job opportunities
How to measure unemployment rate
Number of unemployed / labor force
Labor force = # of unemployed + # of employed
Definition of unemployed
Definition of employed
Employment and job opportunities
“discouraged workers”
Under estimate the severity of unemployment in the economic recession
Unemployment 6
Employment and job opportunities
The unemployment number that is most often used in the media (and by the government) is known as the "U-3". The "U-6" is considered to be a broader measure of the unemployment situation in the United States. The "U-6" includes two groups of people that the "U-3" does not: "Marginally attached workers" - people who are not actively looking for work, but who have indicated that they want a job and have looked for work (without success) sometime in the past 12 months. This class also includes "discouraged workers" who have completely given up on finding a job because they feel that they just won't find one. People who are looking for full-time work but have to settle on a part-time job due to economic reasons. This means that they want full-time work, but can't find it. The "official" unemployment number is the "U-3" - this was 8.1% in February. The "U-6" was an eye-opening 14.8% in February.
Employment and job opportunities
Employment and job opportunities
The inherent instability of a free market system.
Creating the business cycle of an economy
The Keynesian solution
Government intervention
“Mixed economy”
Unemployment rate in the recent Unemployment rate in the recent U.S. history U.S. history
0
5
10
15
20
25
30
The growth rate of U.S. real GDP since 1870
9
Unemployment by country
Data from the Excel table: List of unemployment rates by countries
Least Developed countries
The U.S. and Hong Kong
Western European welfare states
Countries with different labor laws
Central Planned economies
Least developed countries
Surplus labor
Lewis theory: unlimited labor supply
Huge unemployed in urban areas, but many worked in the urban informal sector
Huge under employed in rural areas
The U.S. and Hong Kong
Developed countries with liberal labor laws
Low unemployment rate
But job switch by employees is common and often.
Western European countries
Most Western European countries and Canada
Welfare state
Generous unemployment compensation
Countries by different labor laws
French model: Dismissal by good causes– France, Sweden– Many Southern American countries
The U.S. model: at Will– Hong Kong– Denmark
Unemployment by country
The Japanese model– Japan
Taiwan
South Korea
Centrally Planned Economies
Lower unemployment
The state guarantees jobs for everybody
Surplus labor within the factories, 30-80% of workers could be redundant in the firms
Underemployment and disguised unemployment
Migrant workers in LDCsMigrant workers in LDCs
in informal sectorsin informal sectors
Taking part time jobsTaking part time jobs
““floating population”floating population”
Case in China: A peasant worker in BeijingCase in China: A peasant worker in Beijing– http://bbs.news.qq.com/b-http://bbs.news.qq.com/b-
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