Research Data on Unemployment in Ecuador

Leslie Lopez
ECON 224-Macroeconomics
Unit 4- Individual Project
4/14/2012

All of over the world but mostly in Latin American countries unemployment is a very harsh reality that a lot of people have to face. There are two major relationships between unemployment and the economy. One being that because there aren’t enough jobs to fill that imposes and cost on the economy because there are fewer goods and services to employee people. The second is there are fewer labor jobs and not everyone is well educated to take the administrative jobs that are available. So this cause people to take more labor job then Admin jobs which puts labor jobs in high demand.
Unemployment is involuntary and cause many ill effects on the population. It cause destruction of the family life, Loss of self-esteem, insecurities of finding a new job, Increase in crime rate and high amount of school dropout rates. Studies show that unemployment impairs the physical and psychological wealth fare of humans; higher levels of alcoholism and suicide come about from this situation. The main idea and understanding of unemployment is that there are too many people that need jobs and too few jobs to employ them. But in reality when economists have realized that wages are not flexible enough to clear markets. The recession that happened in 2008-2009 has had a big impact on Ecuador which in order for them to recover they had to change their currency to US dollars which infuriated the people, but it helped the economic status for the country. The national debt and rate of inflation has been dramatically reduced. In fact the World Bank reports that the current inflation rate would be 4% the lowest figure since the recession.
Although the unemployment is getting better in Ecuador it is because they are there to a stabilized market and