2:1:3 - Measures Of Economics Performance - Employment And Unemployment Flashcards
(49 cards)
What is meant by the level of employment?
Is the number of people in work
What is meant by the rate of employment?
Is the proportion of people in work relative to the size of the workforce.
What is meant by workforce?
A measure of people of working age who are willing and able to work.
What are the 2 main ways of measuring unemployment?
- The Claimant Count
- UK Labour Force Survey
What is the Claimant Count?
A measure of unemployment using the number of people who are claiming Job Seekers Allowance (JSA)
How do you get Job Seekers Allowance?
- Need to have made a certain number of National Insurance contributions by working in the past.
- Prove in an interview you are looking for work every 2 weeks
What is the amount given to someone on Job Seekers Allowance?
£73 a week
What can Stop or Reduce claims for the Job Seekers Allowance?
- Have a partner who earns an income
- Have savings above £6,000
- Payments are stooped all together if you have more than £16,000
What age do you need to be in order to get Job Seekers Allowance?
Must be over 18 and below retirement age.
Why is the Claimant Count useful?
- Quick
- Cheap to obtain
- Useful measure of hardship
What is the disadvantage of using the Claimant Count?
Doesn’t give the full picture of unemployment
What is meant by the Labour Force Survey?
A measure of unemployment of those out of work in the last 4 weeks and ready to start in the next 2 weeks
Out of the International Labour Organisation (ILO) and the UK Labour Force Survey which one is used in the UK?
Labour Force Survey
Is it legal requirement for every EU country to conduct this survey?
Yes
To make sure EU countries get data which can be compared to with other countries what must these EU countries do?
Use exactly the same methods
How does the UK Labour Force work?
- Face-to-face interview with a quarterly telephone survey of 80,000 households
- Asking several questions including if anyone has been out of work for 4 weeks and is ready to start in 2 weeks
- Questions only relate to those who are over the age of 16
What is the advantage of using the Labour Force Survey rather than the Claimant Count?
It is more inclusive
What are the disadvantages of using the Labour Force Survey rather than the Claimant Count?
Survey data is 6 weeks out of date when it is published.
What is meant by Underemployment?
A situation in which a worker is employed but wants to work more hours
What is meant by Unemployment?
A situation in which someone is willing and available to work, but it not currently employed
When did the idea of Underemployment become particularly important?
2008 financial crisis
What factors affect employment?
- The school leaving age - anyone in education is not counted as economically active, however in the long term is likely to make school leavers more employable
- Number of school leavers entering higher or further education - University fees are making universities less attractive.
- Level of Net migration - increases the size of the workforce
- Availability of jobs - there are likely to be higher levels of employment if there are more jobs available
- Level of taxes and benefits - if taxes on income are high or out-of-work benefits are generous, there is a deceptive for people to work.
What is meant by Inactivity?
A measure of people of working age who are either unwilling or unable to work.
What percentage of people who are working age in the UK are classified as inactive?
Over 20%
