Module:
Economic Policy and the Global
Environment
Essay Title:
Discuss possible causes of unemployment
in Spain and government policies to
reduce the unemployment problem in an
economy.
Submitted by:
Zhang Yuanxi
Student Number:
16213380
EPGE Assignment 1
1
Table of Contents
1. Introduction: ……………………………………………………………………………………………………….. 2
2. Possible causes of unemployment in Spain ……………………………………………………………… 3
2.1 2008 Global economic crisis …………………………………………………………………………. 3
2.2 Spain’s labour market system. ………………………………………………………………………. 3
2.3 Spain’s labour market system. ………………………………………………………………………. 4
3. Risks of high unemployment ad current policies ……………………………………………………… 4
4. Possible government policies to reduce the unemployment ……………………………………….. 5
4.1 Promote Tourism ………………………………………………………………………………………… 5
4.2 Expansionary Fiscal policies…………………………………………………………………………. 5
4.3 Lower minmum wage. …………………………………………………………………………………. 6
4.4 Education, Training and Development. ………………………………………………………….. 6
5. Conclusion: …………………………………………………………………………………………………………. 6
6. Bibliography ……………………………………………………………………………………………………….. 7
1. Introduction
According to the International guidelines recommended by the International Labour
Organisation (ILO), Unemployment rate ‘allows the country to objectively compare it’s
labour market performance with other countries’ (MOM, 2017) and measures the health of
the economy. Besides those who are employed and unemployed, there is a group of people
who are economically inactive, where the people may not be working and not actively
looking for a job and or not available for job. The economically inactive group consists of
students, people taking care of families, disabled, temporarily sick and disabled, retired
people and discouraged workers. (MOM, 2017) Another type is underemployment, where
skills, education, or availability to work is not applied. There are visible and invisible
