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DIPLOMA IN BUSINESS MANAGEMENT

(UDC)

PRINCIPLES OF ECONOMICS (UECH1103)

Student Details
Name 1. Siti Noor Azura Binti Abdul Halim
2. Ho Yan Yan
3. Muhamad Syazani Bin Abdul Halim

Matric Number 1. UDC190204


2. UDC190203
3. UDC190195

Semester : 1/2019/2020 Course :UDC


Code :UECH1103

Lecturer’s name : Miss Nuur An Nor Binti Morad Submission date: 16 August 2019
Acknowledgement

Alhamdulillah, first of all we would like to thank God as finally we were able to finish our
assignment. This task had been done with all effort by group members eventhough there is a little
difficulty for us while doing this assignment. Luckily, all the problems can be settle down and we
were able to adapt properly and wisely.

Besides, we would like to express our gratitude to our lecturer, Miss Nuur An Nor who has
been guiding us throughout this assignment. She always gives support to us on how to do our
assignment in purpose to produce a good outcome from research that been studied. The topic that
been chosen by our group is about unemployment.

Finally, big thanks to our beloved friends that always stick together and also work hard to
produce a good assignment with all effort and responsibility. We hope that all the effort will give
us a lot of benefits and to our group assignment.
Table of Content

1.0 Introduction …………………………………………………………………… 1

2.0 Discussion……………………………………………………………………… 2

Types of unemployment……………………………………………………….. 2-3

Factors of unemployment……………………………………………………… 4

Problems of unemployment…………………………………………………….5

Effects of unemployment……………………………………………………… 6

3.0 Conclusions and recommendation………………………………………….….7

4.0 References……………………………………………………………………. 8-9

5.0 Appendices…………………………………………………………………….10
1.0 Introduction

Malaysia merupakan negara yang yang mempunyai ekonomi yang kukuh dan stabil bagi menjana
pendapatan negara serta mengimbangkan tahap kemiskinan dalam negara. Masalah pengangguran
adalah isu yang sering dibincangkan dalam kalangan rakyat Malaysia. Hal ini telah menarik
perhatian pihak kerajaan untuk mengatasi masalah ini dengan mempelbagaikan peluang pekerjaan.
Pengangguran ialah individu yang mahu bekerja tetapi tidak dapat memperoleh pekerjaan. Mereka
digolongkan sebagai tenaga buruh dalam sesebuah negara, iaitu mereka yang berumur 15 tahun
sehingga 64 tahun yang sanggup bekerja.

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2.0 Discussion

The term unemployment comes from the word "unemployed" which means do nothing at all. When
it comes to the original word, unemployment is anyone who does nothing in the field of work,
which is money-making activity. Unemployment also stems from the attitude of the employer
themselves who is overly selective about employment and high salary demands according to
existing approvals.

Types of Unemployment

Types of unemployment are friction unemployment. Friction unemployment occurs when


people are between jobs, entering and re-entering the workforce and this is only temporary
unemployment. Frictionless unemployment occurs because it involves students who have just
graduated and want to work or are looking for a better job than they are now. For example, workers
are uncomfortable with their current job and workers are looking for other jobs that are equivalent
to their qualifications. This unemployment occurs when they quit their job and look for another
job but did not qualified for it. If they have a new job then the friction unemployment will decrease.

The second types of unemployment is cycle unemployment. Cycle unemployment occurs


when there is a shortage of job due to a decline in the business cycle or the recession and it involves
an aggregate reduction and this is a difficult long-term unemployment. This will bring impact to
the workers if the economy is in recession, which is a company has to stop the workers from
working to maintain the company’s profit margin. The economic downturn can cause havoc in a
country due to declining demand and high tax rates to increase national income. For example,
workers who do not have qualifications or lack of skills will not be employed. By this, cycle
unemployment will arise in a country.

The third types of unemployment is structural unemployment. Structural unemployment


arises due to the changing of economic structure of a country, which is from agriculture to
industrialization so they are required to have skills or qualifications in the industry for easy
operation. Structural unemployment is a long-term process and difficult to overcome because some
unemployed need to find long-term employment or renew their their skills to adapt the jobs they
have been offered. For example, the agricultural sector is turning to the industrial sector so those

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working in the agricultural sector should be unemployed because they have no skills in the
industrial sector.

The fourth types of unemployment is technological unemployment. Technological


unemployment occurs because of changes in the techniques of production. This type of
unemployment is due to technology advances especially in the agricultural and industrial sectors.
Labor is anticipated by the use of machines that can do the job faster and can process more than
the labor force that has the maximum workload. The use of technology will negatively impact
society and increase unemployment as labor force consumption decreases, resulting in a decline
in household income. For example, labour has been replaced by machines in an industry.

The fifth and last types of unemployment is seasonal unemployment. Seasonal


unemployment arises from seasonal variations in certain industry activities. Seasonal
unemployment is common in agriculture and fisheries. This is a short-term unemployment because
they will continue their work after the season that prevent workers from working as drought or
monsoon. For example, people fishermen will not go to the sea to catch fish during the monsoon
season.

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Factors of Unemployment

Next, the factors of unemployment is lack of experience. Nowadays, an industry would like
to find workers who had a lot of skills and experience. Other than that, most organizations prefer
to employ people with experience of work. In Malaysia, the private sector is not interested in
recruiting local people because they lack of essential skills, such as proficieny in English and
interpersonal skills. Experience of working is very important in an industry so that it can produces
product or services efficiently. If employee do not have skills in working, the industry will not
have skilled workers to show how great the industry is. It is very important to show a good image
of an industry with skilled workers. An industry is forced to terminate inexperienced workers as it
would disrupt the production process of an industry. For example, someone who is applying for a
job must be in tune with their skills.

Second factor of unemployment is problem of graduaters for choosing their jobs. Over-
choosing a job is a major cause for many graduaters who are still unemployed. Most graduaters
choose and hope for a nice job, such as working in the office and wear nice clothes that offer a
high income. This attitude of choosing job can cause graduates to despair of pursuing a job because
of the chance for getting their choice of job is low. For example, graduaters wants to work in an
office with air-conditioner rather than work at a farm.

The factor of unemployment is people less applying for jobs. This happens when people
who do not apply for a job even when there is job vacancy in many company. This is also happens
to the graduaters because they just graduated from college so they would like to have their own
holiday and rest. If this happens continuously, they will get used to it and not want to get a job.
Therefore, the rate of unemployment will increasing in an economy.

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Problem of Unemployment

Besides, there are two types of problem that caused by unemployment, especially the
unemployment of labour, which are the personal hardship and lost production. This problem was
caused because the lack of income and the lack of society was also involved because the lack of
production. The unemployment, especially labour is one of the microeconomics issue facing
economy and government leader. The microeconomics is the same issues as the inflation.

Unemployment creates a personal hardship for the owners of the unemployed resources.
When the resources do not produce a goods, the owners also loss their income. The loss of income
also can less decreases consumption and have a lower living standard. Meanwhile, the owners of
capital,land and entrepreneuship often earn income from more than one resources. Thus, a loss of
income from one resources is not a total a loss of income. Many workers, however often earn
income only from labour. The loss of income from labour means a total loss of income.

One of the most noted programs is unemployment compensation, which is specifically


designed to relieve personal hardships by providing workers with a source of income when they
are unemployed. The personal of hardship suffers by unemployed are of concern to a government
leaders for reason that are common good and somewhat more selfish.

Unemployment also cause a total of production in the economy to became decrease. If fewer
a resources are engaged in production,fewer a good services was produced . The severity
connection between lost production and unemployment is magnified by the ,multiplier effect. Lost
production is specially was troublesome because the oppurnity was a lost forever. The lost
production delay society effort to increase a living standard and the address of problem scarcity.
That is, when an unemployed worker does not produce output today, that output can never be
recouped. If a worker is unemployed on Monday, Monday’s production is lost forever.

Effect of Unemployment

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Other than that, the effect of unemployment to individual are not hard to imagine. When a
person loses her or his job there will impact on people standard of living . Being unemployment
also can lead to a depression, low self esteem,anxienty and other mental health issue. When a
person being unemployment there is not enough money. Unemployment also can lead to a social
issues like many crimes are commited by people who are unemployment and living in poverty.
When unemployment rates increase , crimes rated also tend toincrease because people are too eager
to find money.

The effect of unemployment to economy is loss earning to the unemployed.The potential of


homeless has became increases because people need money to still survive in this world. The
economy also became lower gdp . The spending power of a unemployed person has became
decreases.Then, the employed reduces spending power also increased taxes and the insecurity
about their own work may affect the spending power of the working people as well and they too
may start to spend less than before thus affecting the economy and also the society in a negative
manner.

The effect of unemployment to country is when someone loses their jobs,eventually the
whole nation is affected. Workers has lose income, while the country loses production and
costumer spending.Then, the country also loss the inneficient use of resources to the country. The
number of loss human capital are also decrease.The power of expertise also decrease in this country.
The rate of economy has became decrease because the number of workers also decrease .

3.0 Conclusion and Recommendation

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Unemployment is a serious issue for any economy. It creates negative affects to unemployed as
they are jobless and suffer from worse prospects to find new job and those who are employed feel
less secure to keep their jobs in future. However for overall development of economy, government
and individuals has to take initiative steps in increasing the productivity and improving the
standard of living.

Therefore, the government must take immediate action to resolve the issue of unemployment.
Government should be aware and taking actions to people who are still unemployed by offering
job opportunities to them. Besides, government also can having a programme for the unemplyed.
For example, Graduate Career Accelerated Programme (GCAP), a six week training programme,
which aims to improve the employability of unemployed graduates. It is a skills on upgrading
training programme designed to transform graduates into highly-employable executives for the
service industry. Other than that, unemployed also should be

All parties need to work together to solve the problem of unemployment. This is because
unemployment is a serious issues and it has a negative effect on the economy of a country.
Unemployed need to be trained to enter into the entrepreneurial field and be provided with
affordable loan facilities. In this way, it will encourage unemployed to become successful
entrepreneurs and offers more job opportunities in the market.

4.0 References

Types of unemployment
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- https://ms.routestofinance.com/what-is-cyclical-unemployment
- https://ms.talkingofmoney.com/what-s-difference-between-cyclical-unemployment-and-
seasonal-unemployment
- https://www.slideshare.net/Kamarularnizam/faktor-faktor-yang-mempengaruhi-
pengangguran
- http://tekomjob2011.blogspot.com/2011/10/pengangguran-dan-teknologi.html
- https://www.akuntansilengkap.com/ekonomi/pengertian-dan-jenis-jenis-pengangguran-
serta-contohnya/
- https://nashnote.wordpress.com/2012/01/29/jenis-pengangguran/

Introduction

- https://my.toluna.com/opinions/3310839/Apakah-pandangan-anda-tentang-negara-
Malaysia-Berikan
- https://seribuombak.wordpress.com/2018/08/24/masalah-pengangguran-golongan-muda-

memberi-kesan-negatif-kepada-negara/

- http://pleasebeniceforever.blogspot.com/2015/10/pengangguran-di-malaysia-faktor-
kesan.html
- https://pengertiandefinisi.com/pengertian-pengangguran-dan-macam-macam-
pengangguran/

Effect of unemployment

- https://www.investopedia.com/financial-edge/0811/the-cost-of-unemployment-to-the-

economy.aspx

Problem of unemployment

- http://www.amosweb.com/cgi-
bin/awb_nav.pl?s=wpd&c=dsp&k=unemployment+problems

Factor of unemployment

- https://www.scribd.com/document/331248435/Causes-Unemployment-in-Malaysia
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https://www.scribd.com/document/86338705/Punca-pengangguran

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