Assignment ECO 211 PDF

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FACULTY OF BUSINESS MANAGEMENTECO 211 MACROECONOMICSTITLE:REPORT OF MACROECONOMICS PROBLEM ABOUT UNEMPLOYMENTPREPARED BY:NURAIN A'FIFAH BINTI ABU BAKAR (2019415116)RABIATUL ADAWIYAH BINTI JEFFRI WIRA (2019431268)NUR-AIN ASSWANI BINTI NURULAMIN (2019250606)NUR DAYANA QAISARA BINTI NOOR AZAM (20192285...

Description

FACULTY OF BUSINESS MANAGEMENT

ECO 211 MACROECONOMICS

TITLE:

REPORT OF MACROECONOMICS PROBLEM ABOUT UNEMPLOYMENT

PREPARED BY: NURAIN A'FIFAH BINTI ABU BAKAR

(2019415116)

RABIATUL ADAWIYAH BINTI JEFFRI WIRA

(2019431268)

NUR-AIN ASSWANI BINTI NURULAMIN

(2019250606)

NUR DAYANA QAISARA BINTI NOOR AZAM

(2019228536)

CLASS: BA1112B PREPARED FOR: INA MURNI BINTI HASHIM

UNIVERSITI TEKNOLOGI MARA RAUB PAHANG

TABLE OF CONTENT NO.

TITLE

PAGE

1

ACKNOWLEDGEMENT

3

2

INTRODUCTION

4

3

ANALYZING CURRENT MACROECONOMICS PROBLEM

4

DISCUSSION APPROPRIATE MEASURES TO OVERCOME THE MACROECONOMICS PROBLEM

5

CONCLUSION

6

REFERENCES

ACKNOWLEDGEMENT

First of all, we would like to extend our sincere things thanks to all of the people that helped and supported us doing this assignment especially Madam Ina Murni Binti Hashim, our ECO 211 lecturer, our family, our classmates, and the members of our team. A lot of valuable suggestions were given to improve our assignment. In finishing our assignment, we had to take help and guidelines from some respected people, who deserve our greatest gratitude. The completion of this assignment gives us much pleasure. We would like to show our gratitude to Madam Ina Murni Binti Hashim for giving us a very clear guideline for this assignment throughout numerous consultations. We would also like to expand our deepest gratitude to all those who have directly and indirectly guided us in writing this report.

INTRODUCTION

As we know, coronavirus (COVID-19) from China has spread throughout the world, including Malaysia. The World Health Organization (WHO) has stated that the coronavirus epidemic is a global pandemic because the virus takes a long time to recover. This virus can not only affect human life but can also be predicted to have a negative impact on the global economy. After that, the case worsened day by day until many were killed as a result of the virus. Therefore, Malaysia decided to execute the Movement Control Order (MCO) in March, so many shops and companies need to be closed until ordered to reopen. This can be affected to unemployment rates in our country increasing. In this report, we do research about current issues macroeconomics problems that faced by Malaysia. We find out from the article about Malaysia’s April unemployment spikes to 5%, the highest in 30 years and maybe it can likely to go higher in the coming months.So we want to know how Malaysia manages this unemployment problem during the covid-19 outbreak from spreading more worse to society in Malaysia. The most affected employed persons were in the manufacturing and services sectors, namely accommodation and food & beverage; arts, entertainment & recreation and other services such as beauty centers and salons. However, Malaysia decided to execute Recovery MCO on 10 june to allows the businesses operate, the challenge still lies in the hard hit sectors such as aviation, tourism and small and medium enterprises who will continue the consolidation of business. Some will also face liquidation even. Not only that, our country also give an incentives employers to retain their workers, also will help sustain employment. So from this action will probably be able to reduce the rising unemployment rate in our country due to covid-19 which is now widely spread.

CURRENT MACROECONOMICS PROBLEM

From the article https://www.theedgemarkets.com/article/malaysiaunemployment-rate-spiked-5-april , we can conclude that we are facing the unemployment problem. Since 1990, unemployment rate in April 2020 is spiking and it is the highest. This is happened because of we are suffering from COVID-19. It is not only happens in Malaysia, but it happens all over the world.

Unemployment is referring to a person that unable to find a job but during this pandemic, the companies have the tendency to reduce the number of employees to ease the burden of operating costs, despite predicting a decline in their business revenue. So the company will laid off their workers and also will not accept any new workers. During MCO, the unemployment rate is increasing from to 5% to 6 . It is happened because of during the MCO period due to the shutdown of the economy which caused many businesses to consolidate their workforces. The unemployment causes workers to suffer financial difficulties that may lead to emotional destruction. When it happens, consumer spending, which is one of an economy’s key drivers of growth, goes down, leading to a recession or even a depression .

During recovery MCO, the government allows businesses to operate but businesses were still not fully in operation. the challenge still lies in the hard hit

sectors such as aviation, tourism and small and medium enterprises who will continue the consolidation of business.

MEASURES TO OVERCOME THE MACROECONOMICS PROBLEM Unemployment Unemployment exists when people who are in the working age group are willing and able to work but unable to find suitable jobs at certain level of wage rate. The labor force are those aged between 15-64 years old and available to work. They include those who are employed and also unemployed. They are called the economically active population. Unemployment is often used to measure the health of an economy in a country. This article is about Malaysia’s April unemployment spikes to 5%, the highest in 30 years. The statistics department, in a statement today, said the number of unemployed persons went up 48.8% year-on-year (y-o-y) to 778,800 in April. The labour force grew marginally by 0.6% or 99,100 persons to 15.71 million persons in April 2020, the lowest growth since September 2014. In tandem with this, the working population decreased by 156,400 persons (-1.0%) y-o-y to 14.93 million persons.

Measuring unemployment: Labor force = No. of employed + No. of unemployed Labor force participation rate = Economically active / Working age population x 100% Unemployment rate = No. of unemployed / Labor force (Economically active) x 100%

CONCLUSION In conclusion, due to the current situation that arise all around the world which is coronavirus, it has made the unemployment rate in Malaysia became the highest so far. This is because due to this situation, employers need to reduce the number of the employees to ease the burden of the operations costs. Even though, the employers wants to keep their employees, they can’t do anything since they need to make sure that their business can also survive during this situation by reducing the workforce. Overall this report discusses that the unemployment rate can be reduce since the government has made the opportunity to all the business to reopen during MCO. This can at least make all businesses stabilize their business back and in addition can make the country’s economy stable too.

REFERENCES...