Impact of Unemployment Rate on Growth Rate in Vanuatu and Solomon Islands from 1999 to 2019

Dissertation & PHD
Thesis

Contents
LITERATURE REVIEW................................................................................................................1
Introduction............................................................................................................................1
Concept of Unemployment rate..............................................................................................1
Impact of Unemployment rate in growth rate in Vanuatu ad Solomon from 1999 to 2019...2
Conclusion..............................................................................................................................3

LITERATURE REVIEW
Introduction
The wide range summary of the earlier research regarding the topic which assists in
defining objectives is called as literature review. It is known as a component of academic writing
that clarifies understanding and acknowledges academic literature on a specific topic. The review
of scholarly sources aids in the provision of an overview of current knowledge by enabling
relevant theories, methods, and gaps in existing research. The review is based on the impact of
unemployment rate in growth rate in Vanuatu ad Solomon from 1999 to 2019 (Armstrong, and
Read, 2021). It will cover the research objective associated with unemployment rate and its
impact in growth rate in Vanuatu ad Solomon. The Vanuatu ad Solomon is island of south
Pacific Ocean.
Concept of Unemployment rate
In accordance to Anderson Somer (2022), the unemployment rate is defined as the
percentage of labour force without a job. It leads to rise or fall in the wake of changing economic
condition instead of anticipating them. It is considered most commonly used indicator in order to
have the understanding of conditions in labour market. The reason of occurring unemployment is
when someone is willing and able to work but not having any paid job. In order to measure the
unemployment rate needs identification who is in the labour force which involves people who
are either employed or unemployed. There are mainly three types of unemployment such as
cyclical, structural and frictional unemployment (Campbell, and Connell, 2021). The
unemployment rate is calculated at the national, state, and regional levels using labour-force
surveys conducted by each country's national statistical institute. In the Solomon Islands and
other countries, the unemployment rate is defined as the number of unemployed people
expressed as a percentage of the labour force. People in the labour force are either employed or
unemployed; that is, they do not have a job but are actively looking for one. People who are not
looking for work, children, and the elderly are not included in the labour force. Even in times of
prosperity, the unemployment rate rarely falls below 4-5 percent. People are constantly moving
between different sectors of the economy or between cities. Most of the people in Vanuatu today
were unemployed. People do not have good qualifications to get highly paid jobs (David, 2019).
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