Economics Paper 2, WASSCE (PC, 2ND) 2018

Question 6

 

  1. Define unemployment.
  2. Explain the following concepts:
    1. technological unemployment;
    2. cyclical unemployment.
  3. Outline any four measures a country can adopt to reduce unemployment.

  Observation
    

This question was also popular among the candidates and their performance was above average. Candidates were required to define unemployment, explain technological and cyclical unemployment and outline measures a country can adopt to reduce unemployment in the (a), (b) and (c) parts of the question respectively. Majority of the candidates had a good understanding of unemployment, technological and cyclical unemployment the (a) and (b) parts of the question but some of them fell short in explaining measures that could be adopted to reduce unemployment in the (c) part of the question. Candidates were expected to answer thus to score maximum marks in this question.

 

  1. Unemployment is a situation where those who are able and willing to work cannot find jobs at the existing wage rate
    1. Technological unemployment is unemployment associated with the introduction of new   technology that improves productivity and reduces the amount of labour required in a production process. It also makes certain classes of labour skills irrelevant to the needs of  the society e.g. computer and typewriter. 
    2.                                                                                  
    3. Cyclical unemployment occurs as a result of the fluctuations in the business cycle. During recession, the demand for goods and services falls. The fall in demand may therefore force the producers to reduce their production and also their demand for labour. This may lead to the laying off of some workers so as to reduce their costs.
    1. Increase in investment: Government can encourage the establishment of new firms by providing incentives such as granting of subsidies and tax holidays.
    2. Educational curriculum should be restructured to meet the needs of the industrial sector   of the economy.
    3. Provision of training and retraining facilities to encourage occupational mobility and to help the technologically displaced workers get new jobs.
    4. Establishment of labour exchange or job centers to disseminate information on existing jobs and location.
    5. Establishment of small and medium scale enterprises should be encouraged through the provision of loans and other incentives to make people set up their own businesses.
    6. Policies should be adopted to retain and attract people to the rural areas to take up jobs such as farming.
    7. Population control measures to reduce the rate of population growth and hence the size of the labour force.
    8. Introduction of courses such as entrepreneurship and vocational studies into the educational curriculum to equip students with employable skills to encourage self-employment.