Optimal rate of unemployment in Iran: Dynamic Optimization Approach

Document Type : Research Article


1 faculty MEMBER



Labor market issues as one of the four economic market in terms of dealing with HR always has special attention is Basic role for economic and  social politicians, in targeted  desighning is compilation in labor market , to provide appropriate background is context  foe operation at full employment is in the center  of authorities. Policymakers is politicians in every countries. Reducing  unemployment level is  one of the governmental target that they try a lot to achieve it. Since acheuing desirable development depends on employing  Human Resources. In the other hard lack of using HR appropriately lead to lack of societies financial facilities utilization. As a result growth is   development will not occure  and following that, the rate of unemployment increase more re more to cause poverty a deprivation extend  in the society. Economic  development witheat  effective government  support is not  possible. So the government  has to direct the society and economic to a level to economic  and social development. In economic literature, unemployment and inflation rate are two important variable and two key indicator in relation with the way of economic  condition. The significance tow indicator are so high that, government in the way of rote give – take, refer to these variable, and their changed are as the government success  or fail . So achieve optimum unemployment for every countries economic has on essential place. Of course, it is clear that determining the optimal unemployment rate, without paying attention to  inflation rate and other important variable is a fault that we have to pay attention to it.Philips, reveal that there is a negative relation between increase the wage rate and unemployment rate, by England data that were in his important survey Philips curve. Immediately by economic and political makers and one of the reasons was its compatibility with the inflation changes theory such as: inflation theory caused by demand and cost pressure. Also the policymaker can use the Philips curve slope to reach the intended and unemployment rate, target the corresponding inflation. In addition social loses against social welfare is one of the issues in economic literature with a lot of partisan. Economists take a look at the social welfare or losses welfare while they are recognizing variable. In this respect some of variables have more effect on the social welfare is some of the variables have more effect on the social losses. Since the time that unemployment is inflation increases the social losses is decrease the social welfare minimizing social losses function means to maximization welfare. So function tar set is to minimize the social losses. In this study with using give—take in inflation are unemployment along with Philips expectation are with the dynamic optimized control approach are the account method change has been calculated thrush minimizing social losses according to unemployment optimized rate the resin mohcate that optimized unemployment rate in Iran should be nearly %8 and the deviation of unemployment rate have to decrease the optimized unemployment rate. Using financed are income polices simultaneously is consider to parallel effect on inflation. Are the methods that have this ability to help government to achieve this targest. Inflation is unemployment rate in Iran's economic are more the optimized rate is this lead to increase the social losses in economics. In order to reduce the unemployment is inflation its necessary to precise is be aware of the country's economic atmosphere because effort for reducing inflation is unemployment with various economic policy is not possible. 


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