Women Unemployment Driven by the Inflation

• Main Author: Mariana ROBU
• Format: Article
• Language: English
• Published: Academy of Economic Studies of Moldova 2020-12-01
• Series: CSIE Working Papers Series
• Online Access: https://csei.ase.md/wp/files/issue16/WP_Issue16_78-85_ROB.pdf

Although the Government take some actions in gender equity, the women unemployment is a challenge that exists in the labor market. Implication of women in economic activities will have a positive impact on economic development at national level, and more financial resources will be injected into the economy. As result a growth of inflation of the country is expected for long term period. The paper presents a balance between women unemployment and inflation rate. If unemployment falls below a certain rate, inflation accelerates, so the sufficiently high rate of unemployment, which can avoid this, is called the rate of unemployment that does not accelerate inflation. In the last four decades, macroeconomic research has expanded the analysis, so today we are talking about the existence and estimation of NAIRU, an acronym for Non-Accelerating Inflation Rate of Unemployment, which reflects that level of unemployment corresponding to stable inflation. In the NAIRU model, the real wage negotiated increases with the level of employment, as increased employment means fewer jobseekers and more bargaining power for unions. Unemployment is what regulates the workforce. Any policy aims to declare both a low level of unemployment and moderate inflation. This, with the essential aim of creating high and sustainable economic growth. However, recent decades have shown us that the processes of inflation and unemployment are interfering in many areas and with increasingly unexpected effects.