Business

TUI UNIVERSITY

Lisa Thomas

Bus 301

Module 3 SLP

Dr. Yeo

Labor is an important factor of production for all firms. The most recent unemployment rate is estimated at 9% (January 2011). Economists have identified three types of unemployment. Which type would affect your firm.

The two types of unemployment I believe would affect my firm are Cyclical Unemployment: Cyclic unemployment when there is a recession. When there is a downturn in an economy, the aggregate demand for goods and services decreases and demand for labor decreases. At the time of recession, unskilled and surplus labors become unemployed. Read about causes of economic recession. And Seasonal Unemployment: A type of unemployment that occurs due to the seasonal nature of the job is known as seasonal unemployment. The industries that are affected by seasonal unemployment are hospitality and tourism industries and also the fruit picking and catering industries.

The reason is in a company such as the Walmart Corporation cyclical unemployment is a factor especially with the economy that we are in today. Because with the rise in the economy and consumers not having the purchasing power it basically means they will not be shopping like they normally would have been. Then with seasonal unemployment being a factor as well during the holiday seasons. Black Friday the day after Thanksgiving jumps off the Christmas season with the big sales Walmart hires seasonal help in order to assist in the peak season and the demand of the consumers but after the holiday season is over then back to business as usual and the seasonal helps assistance is no longer needed.

Think about other employment issues such as outsourcing. Do you think your firm would benefit from outsourcing? If you chose a firm in which outsourcing is not feasible, you can still discuss the advantages (or disadvantages) of outsourcing.

Walmart is the global leader in...