Business Economics Essay Example | Topics and Well Written Essays - 1500 words - 1

Business Economics - Essay Example As such, it is argued that, unemployment is directly related to economic growth of any given state or country. Consequently, economists argue that, unemployment is an issue that affects every state or country in the world with varying percentage rates (Srinivasan and Sivagnanam 2010). In light of this, the United Kingdom, the European Union and the United States of America are the three countries that have experienced major unemployment issues in the world. Essentially, the percentage rate of unemployment in these three countries has been in a close watch in for the last five years with major similarities and differences being displayed in this duration of time (McCord 2011). In January 2008, the percentage rate of unemployment was relatively similar in the United States of America and the United Kingdom with a variation of 0.1 % in the captured statistics. However, European Union experienced a higher percentage rate at 1.6% more as compared to UK and the United State of America mean ing that, in that year the EU was leading in percentage rate. In the beginning of 2009, the three countries experienced an increase in the percentage rate, where the rate in United Kingdom increased with 1.9 %, the European Union increased by 1.8%, and the United States of America increased by 3.6%. ... In addition, European Union moved from 8.6 % in the previous year to 9.7 % while the United States of America moved from 8.7% to 9.8%. In a general sense, between 2008 and 2010, the three countries have witnessed a significant increase in the rate of unemployment where each had a disparity of more than 2.0 %. In the beginning of 2011, the United Kingdom insignificantly reduced at 0.2%, the European Union increased insignificantly at 0.1%. However, the United States of America experienced a significant decrease of 0.9 %. The entry into the year 2012 saw a return of the two; United Kingdom and European Union countries into an increase mode. In contrast, the United States of American witnessed a constant decrease from the previous year. In January 2013, the overall percentage rate of the United Kingdom would best be described as fluctuation in terms of increase and decrease. In particular, the country had a decrease compared to the previous year. Layard, et al 2011 argues that, in relat ion to the United States of America, the unemployment level was at its highest of 9.8% in 2010, although the rest of years were covered by a fluctuation between 5.1% and 7.6%. Conversely, the European Union is the leading country among the three in the unemployment rate for the last six year where a significant increase has been noted, the United States of America comes in as the second while the United Kingdom is the last in line. The UK Domestic and International factors Causing Variation in Unemployment Rates in the UK, the EU and the USA Domestic Causing Variation in Unemployment Rates According to the graph, it is apparent that, the unemployment rate in the United Kingdom is relatively lower as