☰ Contents · Economics

Means of social protection; review of Chapter V

Lessons 29–30 · 2 lessons · E. Sariqov, B. Xaydarov. Fundamentals of Economic Knowledge (Economics), Grade 9, 4th edition. “Huquq va Jamiyat” publishing house, Tashkent, 2019
29

Means of social protection

Textbook: pp. 126–129
GoalKnow natural unemployment and full employment, the state’s measures against unemployment, and the roles of the labour exchange and trade unions.
New words
natural unemployment rate · tabiiy ishsizlik darajasifull employment · to‘la bandliklabour exchange · mehnat birjasitrade union · kasaba uyushmasi
Explanation

Unemployment cannot be removed completely: people move between jobs and new professions appear. A situation with only frictional and structural unemployment is full employment, and the unemployment rate then is the natural unemployment rate; the book calls about 4–5% normal, but the exact value can differ by country and period. Cyclical unemployment is the part above the natural level and is the hardest for society. The state studies employment, develops programmes for creating jobs and supporting business, guides people to professions, trains and retrains them, registers the unemployed and pays an unemployment benefit set by law. The labour exchange (this task is now done by state employment services, whose names change) acts as an intermediary between employer and job seeker. A trade union is a public organisation, not belonging to the state, that employees form to defend their rights and interests together: it deals with wages, workplace safety, protection from unlawful dismissal and supervision of compliance with labour laws.

Worked examples
The labour force is 20 million, total unemployment 8% and the natural rate 5% (conditional). Cyclical unemployment is 8 − 5 = 3%, that is, 20 000 000 · 3 : 100 = 600 000 people. An economic recovery reduces this part.
After a factory closed, 40 workers went to the labour exchange. The exchange found vacancies, 25 people took jobs in a suitable trade, and the other 15 were sent to short training. So mediation and retraining reduced unemployment.
Class activity

“Trade union talks”. The class splits into three groups: employer, employees (trade union) and a state representative. A conditional dispute: employees ask for better pay and safety conditions. Groups state their arguments and look for an agreement.

Practice
1
What do you understand by full employment?
2
The labour force is 10 million, unemployment 9% and the natural rate 5%. How many people are cyclically unemployed?
3
The labour force is 20 million and unemployment 8%. How many people are unemployed?
4
Why is a certain level of unemployment considered natural?