Statistics Canada defines the unemployed as those who are without jobs and who are actively looking and available for work.
Unemployment can be classified as:
1) frictional - unemployment which results from people moving between jobs, and new workers entering the labour force
2) seasonal - unemployment which is caused by economic slowdowns related to seasonal variations
3) structural - unemployment that is caused by structural changes in demand patterns
4) cyclical - unemployment that is due to cyclical changes in economic activity
For the economics of the movie business, seasonal unemployment is most relevant. Winter and summer seasons don't necessarily affect movie theater employment, but "hot" movie seasons do...or times when "cool" movies will be showing, bringing more people to the movie theater.
The major costs of unemployment refer to the adverse effects that unemployment has on the economy, on the unemployed and their families, and on the society as a whole. Basically, everybody loses, including movie theaters like CINEPLEX ODEON.
The economic cost of unemployment can be measured as the difference between potential GDP (full-employment output) and actual GDP. If you subtract actual from potential output, you get the output (income) gap, which represents the loss of output due to unemployment.
However, there are several noneconomic costs of unemployment. They include emotional and psychological problems faced by the unemployed and their families like: violence, theft, loss of education and good health, etc.
Finally, there is the Classical Theory of Unemployment: the economy will tend to move towards full employment provided that interest rates, wages, and prices are flexible. Lapses from full employment would be for a short time only, since forces would work to automatically eliminate any unemployment which might emerge. Furthermore, unemployment occurs because the wage rate is set too high, and for some reason, is not allowed to fall.
Unemployment can be classified as:
1) frictional - unemployment which results from people moving between jobs, and new workers entering the labour force
2) seasonal - unemployment which is caused by economic slowdowns related to seasonal variations
3) structural - unemployment that is caused by structural changes in demand patterns
4) cyclical - unemployment that is due to cyclical changes in economic activity
For the economics of the movie business, seasonal unemployment is most relevant. Winter and summer seasons don't necessarily affect movie theater employment, but "hot" movie seasons do...or times when "cool" movies will be showing, bringing more people to the movie theater.
The major costs of unemployment refer to the adverse effects that unemployment has on the economy, on the unemployed and their families, and on the society as a whole. Basically, everybody loses, including movie theaters like CINEPLEX ODEON.
The economic cost of unemployment can be measured as the difference between potential GDP (full-employment output) and actual GDP. If you subtract actual from potential output, you get the output (income) gap, which represents the loss of output due to unemployment.
However, there are several noneconomic costs of unemployment. They include emotional and psychological problems faced by the unemployed and their families like: violence, theft, loss of education and good health, etc.
Finally, there is the Classical Theory of Unemployment: the economy will tend to move towards full employment provided that interest rates, wages, and prices are flexible. Lapses from full employment would be for a short time only, since forces would work to automatically eliminate any unemployment which might emerge. Furthermore, unemployment occurs because the wage rate is set too high, and for some reason, is not allowed to fall.
The wage rate would fall to restore full employment.
In Conclusion, unemployment for movie theaters, like CINEPLEX ODEON, is low. Last year alone Cineplex Odeon, owned by Sony, earned more than $47 billion CAD. Aggregate expenditure results in an increase in production and a decrease in unemployment.
No comments:
Post a Comment