Unemployment in Kuwait

Unemployment in Kuwait

Introduction

Global unemployment is defined as those who want to work but unable to work, because work opportunities are scares and individuals looking for it, and ready to work on current wage level, but it all happened without any gain. The Kuwait unemployment has its own definition according to Kuwait Country Report. It define as that jobs are available to them but they are unwilling to do it they reject the jobs. We recall that the natural unemployment rate ranges from 5% to 6%, now Kuwait had reached between 2% to 4% (Kuwait Country Report, 2012). According to reports from the IMF (International Monetary Fund) and the Central Administration for Statistics, the unemployment in Kuwait have two major issues which are negative response to registered job seekers and Kuwaiti career opportunities that generated are available either in government or the private, and the second type of unemployment that jobs are not available those who are seeking for the job they are waiting from months (Haugen, & Musser, 2011).

Unemployment has a major impact on the economy; it directly impact on Kuwait GDP. There are many ways to decrease the rate of unemployment, it can be decreased by means of investments within the country or decrease the rate of interest that people attracts towards taking loan and start their own business. Country can play a vital role regarding the unemployment, like it can attracts other countries to come and invest in your country or otherwise go for Free Trade Agreement.

In our report firstly I will define unemployment history in Kuwait from 2007 to 2012 and gender wise from 2011 to 2012 by means of graph, than we calculate unemployment percentage with the respect of given figures and then finally will reach to our recommendations and conclusion, and will provide tables in appendixes if they were necessary.

Discussion and Analysis

Unemployment in the Short and the Long Run (2007-2012)

Frictional Unemployment indicates the condition of those who are not employed or not working. Those who are interested in the short run job, for those seeking work for the first time or changing employment, in fact, it takes time to match the demands of the workers with the labor market. The model of the balance of the aggregate market assumes that all workers and all occupations are equal and every worker is suitable for any type of employment, in reality workers have skills and preferences of each other but it takes time to find a new job.

Unemployment steady state of an economy depends on the rate of separation from work and by the rate of production of employment. The process of job search and wage rigidity is two of the reasons why the process of finding work is not immediate. If the majority of unemployment is of short duration, it can be assumed that this is the expected unemployment friction. If unemployment is in long run unemployment is to be classified as structural. If one aims to lower the natural rate of unemployment, economic ...