Unemployment and Economic Issue of Cyprus
There have some economic issue has occurred in Cyprus. By Stock Watch article, unemployment rate of Cyprus had decreases to 7.6% on fourth quarter of 2018 compare with 7.8% unemployment in third quarter. According to Labor Forces Survey was done by Statistical Service of Cyprus, total labor force was amount 440,765 people or 62.5% in 2018 compare with total labor force which about 428,291 people or 61.6% in 2017. Moreover, total number of employee person was 407,382 people or 57.8% compare with 384,911 employed person or 55.3% in 2017. It also mean that, there have 33,383 unemployed persons or 7.
6% of unemployment rate in 2018 compare with 43,380 unemployed persons or 10.1% of unemployment rate in 2017. Besides that, unemployment rate about 20.6% of the young persons aged was around 15-24 years old in 2018 compare with 22.9% unemployment rate in 2018. After that, during duration of unemployment, percentage of total unemployed persons can search a new job in period of fewer than six months was 53.7%. Period between 6-11 months for unemployed persons can find a new job was 14.2% and there have 32.1% of unemployed person was long-term unemployed.
In my opinion, unemployment means that persons don’t have a job, they were looked for job, and suitable for work. The unemployment problem also gave big impact to country. For example, unemployment would lower living standard because people not working and make the income fall. It would force people spend less on goods, and services. Then, it also makes productivity became inefficient and occur social problem because people in lower incomes and have more frees time for them to participate in troublesome social activities, it would lead to more crimes.
The government tax would earn less because people not spending as well. Due to lower income. The unemployment rate for Cyprus was decreased because economy was grown better and stay at healthy rate in 2018 compare with previous year. When economy grow better, jobs were relatively plentiful would make the unemployment start to decrease and falls. It also can increase job opportunity for people, decrease unemployment rate and help to increase people income.
Beyond that, the other economic issues of Cyprus was about fiscal policy. By International Monetary Funds (IMF) article, Cyprus was reduced risks for public debt maintainability and safeguard fiscal space. Then, it must be awareness and careful with the fiscal pressure when the fiscal result remains firm and strong. Country should decrease public debt because country planned to keep a fiscal surpluses. Fiscal stance would consider on competitive and improve wages pressures. Moreover, Cyprus should keep tight of spend discipline while the public debt have increases. The increase’s debt would lead some larger banking sector contingent liability become grow slowly. Then, Cyprus necessary to manage careful in changes public insurance into healthy sector. Fiscal structural reform was required to minimize the risks. For example, public management, government, and expenses reviews. Besides that, the structural reform was help achieve maintainable, increase investment tendency, and grown up economy. Cyprus need invests more productive sectors because it can help to maintain economic growth. After that reforms were very significant for Cyprus because can reduce cost, increase investment and finance. Moreover, fiscal structural reforms need to strength services delivery and decrease risk. For example, government reforms can increase service delivery and reinforce Central Bank became more expedited.
In my opinion, fiscal policy means that government’s spending level, taxing behaviour or budget policy. In order to influence or monitor nation economy. Then, the fiscal policy also known as sister strategy with monetary policy. The government would use the mixed of fiscal and monetary policy. It used for control economic phenomena. Fiscal policy also plays as an important role in managed the country economy because it can help country sustains a healthy value money and increase employment. After that Cyprus tried decreased public debt was very useful and efficient way to maintain a fiscal surplus. Because when the debt become more and higher would make the country faced the financial difficulties and suspend some public infrastructure. For example, Malaysia was having a higher debt problem and forces government need to suspend some large public infrastructure. Other than that, fiscal structural reforms also very significant for a country because it can help to decrease the financial deficit and increase the financial surplus.
