2.1.3 Employment Flashcards
Unemployment
Those who are of working age, are willing and able to work and are actively seeking work but cannot find a job.
Labour force survey
Asks 60-70 thousand UK households to self-classify as being employed, unemployed or economically inactive
Claimant count
Counts the total number of recipients of Job Seeker’s Allowance (JSA) added to those looking for work to claim Universal Credit (UC)
Unemployment rate
Proportion of the economically active population who are unemployed
What are the disadvantages of using the national rate of unemployment as a measure?
- Hides regional and local variations
- Hides variations in unemployment by age/gender/ ethnicity
- Hides duration of joblessness
Long term unemployment
Refers to people who have been unemployed for 12 months or more.
The longer you are unemployed, the harder it is to find another paid job
Mass unemployment
Exists when officially one person in ten in the labour force is out of work
Youth unemployment
Measured unemployment rate for all 16-24 year olds
In 2011 it was 22% and 12% by 2020
Why is youth unemployment relatively high?
- Lack of experience (weaker human capital)
- lack of education or training
- Age discrimination (perceived as less motivated)
- Economic downturns (first to be laid off/ reduced hours)
- Automation and technological advancements (
Lots of retail jobs are replaced by machines)
Discouraged workers
A type of group of inactive work-seekers who have ceased to seek work as they believe there are no suitable jobs available
Hidden unemployment
The number of people who do not have work but are not counted in government reports for example they have stopped looking for a job or they work less than they want to
Examples
- Someone who is over-skilled work their current job
- Working part time but wants to work full time
- Discouraged workers
- Sidelined onto disability benefits
- Some care for elderly relatives full time rather than part time before
- Rise in self-employment ( zero hours contract)
Accuracy of unemployment figures
- labour force survey is intended to be representative as it is a high sample but there is always scope for sample error
- measured unemployment excluded the economically inactive
- unemployment does not account for underemployment
- there are informal labour ,armers such as hidden employment
Labour force participation rate
Workers in the labour force compare to the number of people in the working population
Seasonal unemployment
Without paid jobs due to seasonal changes in demand, production and employment
Examples
- farming
-tourism
- after the holidays
Frictional unemployment
Caused by workers seeking a better job or between jobs
Affects people who are new entrants to the labour maerker such a school leavers
Affects people on short term employment contracts
Always some amount in the labour market regardless of the trade cycle
Can be reduced by making information on jobs more available or subsidising it
Examples
Early retire returning to the labour market
Career change
Searching for a new job after maternity leave
