Economic Concerns of Unemployment in Brazil (Other (Not Listed) Sample)

Economic Concerns of Unemployment in Brazil
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ECONOMIC CONCERNS OF UNEMEPLOYMENT IN BRAZIL
Introduction
Unemployment is defined in economic terms as the total number of people who are actively searching for paid jobs but cannot find in it in a nation (Cruces, Ham & Viollaz, 2012). They include the people who are in the working age group, are able to work but their efforts to acquire a paid job have not yet paid off. The graduates from institutions of higher learning who have not yet been employed also und up to the unemployment of a nation. The South American continent countries have been faced with unemployment just as other nations in other continents. The unemployment in Brazil has a number of economic effects to the economy of the country. This paper examines and explores some of the economic concerns of unemployment in Brazil by critically analyzing the relationship between unemployment and the status of the economy of Brazil so as to determine the trends in the economic concerns exhibited by unemployment.
Economic Concerns of Unemployment
Unemployment in Brazil has caused a reduction in the country’s GDP. The gross domestic product refers to the value of all goods and services produced within the border of a nation for a specific period of time. As the definition of the GDP suggests, the production of the goods and services are the main issues in the calculation of the country’s GDP. In fact, some authors have suggested that the GDP of a nation is the broadest measure that can be used to indicate how large or small the economy of a nation is. The production industry in Brazil has experienced a slow down due to increased unemployment that has reduced the expenditure of the people of Brazil. Unemployment means that many of the people lack the many or have insufficient funds to buy the goods and service produced in the nation. That being the case, the producers of services and goods in the nation have to make sure that the goods and services produced bring profits and not losses and as a result, they end up limiting their production quantities. This negatively affects the amount of money that the country makes from the production of goods and services and leads to a decreased GDP. The reduced GDP has an impact on the growth of the economy of the nation of Brazil. For example the decrease in the GDP growth rate of Brazil resulted to a decrease of up to 3% of the nations annual economic growth rate in the year 2008 (Da Silva, 2010).
Reduced purchase power is another effect that the unemployment in Brazil has caused. The large number of unemployed people in Brazil has no money to purchase goods and services from the producers. This is seen in the reduced returns that producers experience due to lack or existence of very few buyers of their products. The reduction in the purchase power in Brazil has related economic concerns. For example, the reduction in the citizen’s purchasing power of the products in their nation can lead to reduced profit margins. The reduced profit margins translate to reduced revenue to the government from the business that exists within the borders of the nation of Brazil. The implication of this is that the government becomes unable to continue with the development of the necessary infrastructure for the stimulation of the economic growth of the nation. Research done in Brazil on the effects of low citizen’s purchasing power has clearly indicated that economic recession can result from the reduced purchase power of the citizens of the country (Ball, De Roux & Hofstetter, 2013). The statistics on the economic crisis that was experienced in Brazil in the resent years has been largely attributed to the low purchasing power of its people which has led to the reduced profit margins for the businesses.
The other economic concern that unemployment in Brazil threatens to bring is inflation. Inflation refers to the sustained general increase in the prices of consumer goods. Unemployment in Brazil is making the producers of both services and goods in Brazil to trim down their production. The result of this has been the production of fewer products than the population of Brazil requires. The rich in the country are therefore the only people who have been able to make purchases of certain products due to the fact that their prices have increased tremendously. The increment of the prices of the consumer goods and services is also connected to unemployment in a way that the unemployment reduces the profit margins that producing companies make and therefore, as a way of trying to squeeze profits or increasing the profit margins, they tend to increase the prices of their products so that they may be able t...