Unit 2 Unemployment

Unit 2 Unemployment

1.a) Make sure that you know how to pronounce the following words, consult the dictionary if necessary:

disguise, mortgage, foreclosure, malnutrition, self-esteem, luxuries – luxurious, debt, suicide, complementary, to substitute – substitutes, technique, frictional, underemployment, to subsidize - subsidies, to alleviate

b) Read the following text and do the exercises after it.

Text

Unemployment is the condition of willing workers lacking jobs or "gainful employment". In economics, unemployment statistics measure the condition and extent of joblessness within an economy. A key measure is the unemployment rate, which is the number of unemployed workers divided by the total civilian labor force. Unemployment in an economic sense has proved a surprisingly difficult thing to define, let alone "cure".

Before industrialization unemployment has been said not to have been recognized as an issue in rural areas, despite the "disguised unemployment" of rural laborers having little to do, especially in conditions of overpopulation.

The absence of a job when a person needs one can make it difficult to meet financial obligations such as purchasing food to feed oneself and one's family, and paying one's bills; failure to make mortgage payments or to pay rent may lead to homelessness through foreclosure or eviction. Being unemployed, and the financial difficulties and loss of health insurance benefits that come with it, may cause malnutrition and illness, and are major sources of mental stress and loss of self-esteem which may lead to depression, which may have a further negative impact on health.

Lacking a job often means lacking social contact with fellow employees, a purpose for many hours of the day, lack of self-esteem, mental stress and illness, and of course, the inability to pay bills and to purchase both necessities and luxuries. The latter is especially serious for those with family obligations, debts, and/or medical costs, where the availability of health insurance is often linked to holding a job. Some economists state that rising unemployment increases the crime rate, the suicide rate, and causes a decline in healthiness. However, during the Great Depression, when unemployment rates exceeded 20% in many countries, the crime rate did not increase. Because unemployment insurance in the U.S.

typically does not even replace 50% of the income one received on the job (and one cannot receive it forever), the unemployed often end up tapping welfare programs such as Food Stamps — or accumulating debt, both formal debt to banks and informal debt to friends and relatives. Higher government transfer payments in the form of welfare and food stamps decrease spending on productive economic goods, decreasing GDP.

Some hold that many of the low-income jobs aren't really a better option than unemployment with a welfare state (with its unemployment insurance benefits). But since it is difficult or impossible to get unemployment insurance benefits without having worked in the past, these jobs and unemployment are more complementary than they are substitutes. (These jobs are often held short-term, either by students or by those trying to gain experience; turnover in most low-paying jobs is high, in excess of 30%/year.) Unemployment insurance keeps an available supply of workers for the low-paying jobs, while the employers' choice of management techniques (low wages and benefits, few chances for advancement) is made with the existence of unemployment insurance in mind. This combination promotes the existence of one kind of unemployment, frictional unemployment.

Another cost for the unemployed is that the combination of unemployment, lack of financial resources, and social responsibilities may push unemployed workers to take jobs that do not fit their skills or allow them to use their talents. That is, unemployment can cause underemployment. This is one of the economic arguments in favor of having unemployment insurance.

The most developed countries have aids for the unemployed as part of the welfare state. These unemployment benefits include unemployment insurance, welfare, unemployment compensation and subsidies to aid in retraining. The main goal of these programs is to alleviate short-term hardships and, more importantly, to allow workers more time to search for a good job.

In the U.S., the unemployment insurance allowance one receives is based solely on previous income (not time worked, family size, etc.) and usually compensates for one-third of one's previous income. To qualify, one must reside in their respective state for at least a year and, of course, work.

Focus on text comprehension

2. Answer the following questions using information from the text.

1)What is unemployment?

2)How is the unemployment rate calculated?

3)What problems arise when one can’t find a job?

4)Has unemployment always been a serious problem?

5)Is there a direct connection between unemployment and the crime rate?

6)What can the unemployed do to survive?

7)What measures are taken by governments trying to solve the problem?

8)Which of them are effective? Which are the ones that cannot help?

9)What are the pros and cons of unemployment insurance?

3. Comment on the following statements using information from the text.

1)Unemployment in an economic sense has proved a surprisingly difficult thing to “cure”.

2)Lacking a job often results in lack of self esteem, mental stress and even illness.

3)Some economists state that rising unemployment increases the suicide rate.

4)Higher government investments in welfare programs can lead to a decrease in the country’s GDP.

5)Low-income jobs are not a better option than unemployment.

Focus on vocabulary

1.Translate the following words into Russian and reproduce the context they are used in: gainful employment, disguised unemployment, foreclosure, eviction, rural laborers, insurance benefits, suicide rate, unemployment rate, productive economic goods, low-paying jobs, management techniques, unemployment benefit/allowance

2.Find in the text English equivalents for the following Russian words and phrases:

условия и степень безработицы; ключевая единица; не говоря уже; делать выплаты по закладной; потеря/недостаток самоуважения; неспособность оплачивать счета;

покупать как предметы первой необходимости, так и предметы роскоши; использовать благотворительные программы; накапливать долги; лучший выбор; они больше дополняют, чем замещают; приобрести опыт; наличный запас рабочих; методы управления; фрикционная/временная безработица; соответствовать/подходить умениям; неполная занятость; пособия для/средства помощи для; субсидии; смягчить трудности на первых порах; в соответствующем штате.

3. Match the words to form collocations.

4.a) Explain the following notions. Use any English dictionary for advanced learners if necessary:

frictional unemployment, structural unemployment, cyclical unemployment, technological

unemployment, classical (real-wage) unemployment, Marxian unemployment , seasonal

unemployment

b)Fill in the blanks with the notions mentioned above.

1)… When unemployment is needed to motivate workers to work hard and to keep wages down.

2)… When real wages for a job are set above the market-clearing level, commonly government (as with the minimum wage) or unions, although some suggest that even social taboos can prevent wages from falling to the market clearing level.

3)… When there is not enough aggregate demand for the labor. Caused by a business cycle recession.

4)… When moving from one job to another, the unemployment temporarily experienced when looking for a new job.

5)… Caused by the replacement of workers by machines or other advanced technology.

6)… When an occupation is not in demand at certain seasons. For example, construction workers in winter, ski instructors in summer.

7)… Caused by a mismatch between the location of jobs and the location of job-seekers. "Location" may be geographical, or in terms of skills. The mismatch comes because unemployed

are unwilling or unable to change geography or skills.

5. Fill in the blanks with prepositions if necessary. You can consult the text.

1)Lacking … jobs or "gainful employment" makes it difficult to meet … financial obligations.

2)The financial difficulties may have a further negative impact … health.

3)The availability of health insurance is often linked … holding a job.

4)Rising unemployment can cause a decline … healthiness.

5)Higher government transfer payments in the form of welfare and food stamps decrease spending … productive economic goods, decreasing GDP.

6)Turnover in most low-paying jobs is high, … excess … 30% a year.

7)Lack … financial resources, and social responsibilities may push unemployed workers to take jobs that do not fit … their skills.

8)This is one of the economic arguments … favor … unemployment insurance.

9)The main goal is to allow workers more time to search … a good job.

10)The unemployment insurance allowance one receives compensates … one-third of one's previous income.

6. Fill in the blanks with a suitable prepositional phrase from the previous exercise.

1)The money that he got was not enough ... the family’s living expenses.

2)If your computer is ... the Internet, you can share information in a great variety of forms.

3)He ... the missing papers everywhere.

4)How much do you ... raw materials?

5)They got profits ... $50 mln.

6)Tougher environmental laws could have negative ... economic growth.

7)The Board voted ... the proposed merger.

8)... jobs can cause mental stress and illness.

9)The sharp ... purchasing power of a national currency is expressed in a general rise in prices.

10)Their business ... funds to buy new equipment.

7. a) Speak about unemployment as an economic notion using the following words and phrases:

to lack jobs, the condition and extent of joblessness, total civilian labour force, disguised unemployment, rural laborers, to meet financial obligations, to feed one’s family, to pay one’s bills;

b) Dwell on the effects unemployment has on people. Use the expressions given below:

to make mortgage payments, foreclosure or eviction, health insurance benefits, to cause malnutrition, loss of self-esteem, to have a negative impact on health, the inability to pay bills, to purchase necessities and luxuries, to hold a job, crime rate, to exceed 20%;

b) Speak about unemployment insurance and welfare programs as means of assisting jobless people, make use of the following vocabulary:

to receive income, to accumulate debt, transfer payments, productive economic goods, to have aids for the unemployed, welfare state, unemployment compensation and subsidies, to alleviate short-term hardships, to be based on one’s previous income, to qualify;

c)Discuss the types of unemployment using the words and phrases below:

“disguised unemployment”, low-income jobs, to get unemployment insurance benefits, to be held short-term, to gain experience, turnover, to keep an available supply of workers, management techniques, frictional unemployment, lack of financial resources, to fit one’s skills, to cause underemployment.

8.Translate the following sentences from Russian into English using the vocabulary of this unit.

1)Когда нет достаточного количества рабочих мест или нет доходной работы,

начинается безработица. В статистике по безработице указываются условия и степень безработицы, а ключевой единицей является уровень безработицы.

2)С точки зрения экономики, безработицу очень трудно определить, не говоря уже о том, чтобы вылечить. А было время, когда скрытая безработица сельских рабочих вообще не считалась проблемой.

3)Безработный человек не может покупать себе предметы первой необходимости

(еду, одежду, лекарства), не может платить за жилье, не способен оплачивать счета и делать выплаты по закладным.

4)У безработного нет медицинской страховки, и поэтому он не может получать страховых выплат и пользоваться медицинскими услугами. Плохое питание,

болезни, стресс, потеря самоуважения ввергают человека в глубокую депрессию.

5)Безработица влияет на уровень преступности. Чем сильнее безработица, тем больше количество преступлений и суицидов. Тем не менее, в период Великой Депрессии, когда безработица превысила 20%, уровень преступности не повысился.

6)Зачастую страховка по безработице не приносит облегчения, и безработные вынуждены либо пользоваться благотворительными программами, либо накапливать долги.

7)Низкооплачиваемая работа не лучше безработици с системой социального обеспечения. Такая работа и безработица скорее дополняют друг друга, а не замещают.

8) Страхование по безработице держит в наличие запас рабочих для

низкооплачиваемой работы. А работодатель, зная о большом количестве таких рабочих, не желает повышать зарплату и менять свои методы управления. Это приводит к фрикционной безработице.

Language focus

1. Match the words on the left with their definitions on the right.

Examples: In economics, unemployment statistics measure the condition and extent of joblessness within an

economy. Unemployment in an economic sense has proved a surprisingly difficult thing to define, let alone

"cure".

2. Choose the right word (economic/economical) to fill in the gaps.

1)The new political reform can slow down the … growth of the country.

2)She never used to be … when it came to buying clothes for her children.

3)It is more … to buy goods in bulk.

4)What brought about great … changes in Great Britain?

5)"I wish I were an … housewife", she said.

6)- Does your car run on petrol or diesel? - Diesel, it is more … .

7)The … climate for the private business is improving.

8)What can stimulate the … growth of the small business sector?

9)China's recent … achievements are remarkable.

10)Which is more … to go there by bus or by metro?

11)This greenhouse has a very … heating system.

3.Fill in the gaps with economics, economy, economic, economical, economist, or economize.

1)… expected a sharp rise in unemployment.

2)Modern high-speed trains run at the speed of 200-300 km per hour and help … a lot of time.

3)Within a free-market … competition is strong.

4)Political events affect the country's … growth.

5)My sister is an … graduate.

6)For years we had to … on everything to save enough money to buy a car.

7)According to the … forecast the oil-prices will rise dramatically.

8)Peter studied … at Oxford.

9)… newspapers criticized the new … reforms.

10)After the war the country's … began to grow.

11)A small car is easy to park, …, and cheap to service.

12)Mr. Wilson was our … teacher at school. Listening to him talk about all those … laws and theories would put anyone to sleep.

13)Buying cheap things is cheap … .

14)The main aim is to reach … stability.

15)… paper you preserve the forest from which it is made.

16)Strict … should be introduced.

17)Parents want their children to be more … . It will help them to avoid … problems in the future.

4.Explain the meaning of the following word-combinations and use them in sentences of your own: economy class, economy pack of cornflakes, economy size

5.Revise the difference between both ... and ... / either ...or... / neither ... nor...

Example: Lacking a job often means the inability to purchase both necessities and luxuries.

a) Fill in the blanks with both ... and ... / either ...or... / neither ... nor...

1) He doesn’t have ... the right qualifications ... experience.

2)... credit-card agencies ... discount stores prosper during periods of inflation.

3)... the management ... the workers are going to give way in the disagreement.

4)... the management ... the workers will have to give way in the disagreement.

5)If you have any problems, talk … to the foreman ... to your partner.

6)Competition among business firms affects ... the price ... quality of goods.

7)If the rise in prices is ... very large ... rapid the condition is known as hyperinflation.

8)The president spoke ... for ... against the new economic reforms.

9)I’m sorry, I can’t ... confirm ... deny his resignation.

10)You can contact us ... by phone ... by mail.

b) Translate the following sentences with both ... and ... / either ...or... / neither ... nor...

1)Президент компании говорил как о достигнутых результатах, так и о том, что еще предстоит достичь.

2)Живя на одно пособие, человек может либо купить продукты питания, либо оплатить коммунальные услуги.

3)На собрании присутствовали как рабочие, так и руководство завода.

4)Ни министры, ни члены правительства не разбирались в этом вопросе.

5)– Могу я поговорить с вашим начальником? – Нет, он сейчас либо в министерстве,

либо в посольстве.

6)- За что его уволили? – У него нет ни нужных качеств, ни опыта.

7)Если что-то изменится, пожалуйста, дайте нам знать либо по телефону, либо по Интернету.

8)Тяжелая низкооплачиваемая работа влияет как на здоровье рабочего, так и на его психику.

9)Отдельно взятый потребитель не может повлиять ни на цены, ни на качество товара.

10)Простой рабочий может либо устроиться на низкооплачиваемую работу, либо ждать благотворительной помощи.

6. Phrasal verb: to end

Example: The unemployed often end up tapping welfare programs.

a) Match the phrasal verb with its meanings.

b)Fill in the blanks with the phrasal verb to end.

1)He ... his presentation ... the company’s slogan: “You name it, we have it”.

2)They arrived in Rome, but their luggage ... in Berlin.

3)Forbes ... in prison for not paying his taxes.

4)The poor management ... great financial losses.

5)The 80-s ... a collapse in the world economy.

6)We ... having to postpone our decision.

7)When I had my child I went back to work, so I really … doing two full-time jobs.

8)His attempt to persuade the partner … failure.

9)Why don’t you … your report … a colorful diagram?

10)Somehow they all … in my office.

c)Translate the following sentences into English using the phrasal verb to end.

1)Конечно, мы пробовали все методы мирного воздействия. Но наши попытки окончились неудачей.

2)Он начал работать на фирме обычным менеджером, а закончил генеральным директором.

3)Мы закончили презентацию показом нашего нового продукта.

4)Несмотря на все трудности, мы вышли победителями.

5)Непоследовательные действия руководства привели к беде.

6)Чем ты закончил свой доклад?

телекоммуникационной компании.

8)С ним невозможно разговаривать, все наши дискуссии заканчиваются ссорой.

9)Корпоративная вечеринка закончилась игрой в боулинг.

10)Если чиновник продолжит брать взятки, он окажется в тюрьме.

Focus on speaking

Using the information you gained from the text

1)prove that unemployment is both an economic problem and a cause for social concern.

2)describe governments’ attempts to fight unemployment.