Welcome

Anti Essays offers essay examples to help students with their essay writing.

Sign Up

Analyse the Relationship That Exists Between the Global Economic Cycle and the Level of Domestic Employment. Essay

Open Document

Below is an essay on "Analyse the Relationship That Exists Between the Global Economic Cycle and the Level of Domestic Employment." from Anti Essays, your source for research papers, essays, and term paper examples.

There are strong relationships that exist between the global economic cycle and the level of domestic employment.
When the global economic cycle is at a low point , economic activity for businesses is low and so is consumer confidence.   As business activity is low, companies will look for ways to minimise their costs.   In many businesses, costs associated with staff is an organisation’s highest expense, therefore in times of slowing or low economic activity businesses will cut jobs which leads to an increase in unemployment.   As there is low activity in the economy generally, it could take some time for the rate of unemployment to improve.
When this occurs, the government tends to reduce interest rates. The reduction of interest rates is meant to help stimulate business and consumer confidence with a view to boost consumer demand for the goods and services that businesses sell. If this is successful, it will reduce unemployment and put people back into the workforce.
At times when there is high rates of economic activity or “boom” period, business and consumer confidence is high.   In such cases, consumers are demanding high quantities of goods and services produced by companies.   For companies to meet this increased level of demand, they generally expand their operations including hiring more staff, which causes the level of unemployment to fall.
In boom conditions the government maybe worried that the boom cannot last forever, and so might increase interest rates to gently slow down and control economic activity without causing a bust.

Show More


Citations

MLA Citation

"Analyse the Relationship That Exists Between the Global Economic Cycle and the Level of Domestic Employment.". Anti Essays. 14 Dec. 2018

<http://trenmayamx.com/free-essays/Analyse-The-Relationship-That-Exists-Between-761760.html>

APA Citation

Analyse the Relationship That Exists Between the Global Economic Cycle and the Level of Domestic Employment.. Anti Essays. Retrieved December 14, 2018, from the World Wide Web: http://trenmayamx.com/free-essays/Analyse-The-Relationship-That-Exists-Between-761760.html