MAEC Project TA24 [6/6] by

MAEC Project TA24 [6/6] by https://padlet.com/alinafongyuqi/2l5bwo1zq46b Alina Fong, Calista Khek, Chan Zhan Leong, Jae Chong, Khoy Yu Yin, Nimalan Sanjayan en-us 2017-11-14 12:35:30 UTC 2017-12-17 08:49:44 UTC hello@padlet.com Unemployment alinafongyuqi https://padlet.com/alinafongyuqi/2l5bwo1zq46b/wish/206734604 The unemployment rate in china has hit its lowest point in multiple years and is now at 3.85% by the end of September 2017. However, the economy still faces challenges.

Despite the low unemployment rate, China's economy still faces an overall slowdown largely attributed to a new internet economy and entrepreneurship. However, China's government is making an effort to actively support startups to help them counter the setbacks faced.

Another concern China faces is that each year more than 8 million new university graduates enter the job market thus they constantly need to create 15 million jobs per year to try to reduce the rate of unemployment. One measure as mentioned by Premier Li Keqiang in march is that China added another 13.14 million new urban jobs and still aim to add another 11 million this year while maintaining a employment rate of less than 4.5%.

Types of Unemployment China faces
- Cyclical Unemployment
> Caused by the lack of jobs during recession. When real GDP falls, some companies close down, many jobs disappear and those unemployed race for the lesser amount of jobs available.

- Structural Unemployment
> Caused by a mismatch of the skills workers out of work and the skills required for existing job opportunities, additional education and retraining required for the unemployed to regain employment.

- Frictional Unemployment
> Caused by the normal search time required by workers with marketable skills who are changing jobs, initially entering the labor force or re-entering the labor force.]]> 2017-11-14 14:40:07 UTC https://padlet.com/alinafongyuqi/2l5bwo1zq46b/wish/206734604 Inflation https://padlet.com/alinafongyuqi/2l5bwo1zq46b/wish/206736630 Causes of Inflation

Demand-Pull Inflation

Primarily caused by increase in demand of goods and services by consumers.
Increase in demand --> Lack of supply --> Increase in prices --> Inflation

Cost-Push Inflation

Caused by the increase in cost of production.
Increase in prices of goods and services --> Increase in wages
--> Further increase in prices of goods and service --> Further increase in wages

China's Consumer Price Index (CPI) rose 1.6% from September last year.

Inflation Rate =

^{Current Year CPI - Previous Year CPI/}

^{Previous Year CPI x 100}The rise in CPI from the previous year's CPI suggests that China is facing an inflation.
This could have been due to the 6.3% increase in Producer Price Index (PPI).

]]> 2017-11-14 14:43:03 UTC https://padlet.com/alinafongyuqi/2l5bwo1zq46b/wish/206736630 Gross Domestic Product https://padlet.com/alinafongyuqi/2l5bwo1zq46b/wish/206746360 GDP is defined as the market value of all final goods and services produced in the economy during a calendar year.

China's GDP has a 6.8 growth rate as of July - September is 6.8%, a 0.1% difference with the previous quarter. (Q-O-Q)
Economic growth is obtained by:
[(The real GDP of current year - the real GDP of previous year) / (real GDP of previous year)] x 100% .

This modest drop in the GDP growth rate is most likely due to governments efforts to cool the property market and cut debt risks and increase in exports this year. Retail sales also grew 10.3 percent from a year ago.
Since China is an export-sensitive market, the Net Exports is a significant variable to the Real GDP (based on the expenditure approach).
The Real GDP through Expenditure Approach can be computed by:
Personal Consumption Expenditure + Gross Private Domestic Investment + Government Expenditure on Goods and Services + Net Exports (Exports - Imports).]]> 2017-11-14 14:56:21 UTC https://padlet.com/alinafongyuqi/2l5bwo1zq46b/wish/206746360