2.1.3 Unemployment Flashcards

1
Q

What is meant by ‘unemployment’?

A

those who are willing and able to work and are currently seeking work, but cant find anything at this given moment

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2
Q

What is the Claimant Count?

A

the amount of people claiming JSA

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3
Q

Give a reason why this may not be accurate

A

some may be ashamed to claim JSA so it does not show the whole unemployed population

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4
Q

What is the ILO measure of unemployment?

A

Labour force survey is the survey of 60,000 households analysing their employment status

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5
Q

Give a reason why this might not be accurate

A

it is under representative as it only represents part of the population

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6
Q

Which of the two measures is typically higher and why?

A

ILO, because by law you must complete it

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7
Q

What is meant by ‘underemployment’

A

when people are working in jobs where they would be over qualified

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8
Q

Why did this become more relevant post-Financial Crisis?

A

Many industries were shut down

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9
Q

What is meant by ‘employment’?

A

those in paid jobs right now

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10
Q

What is meant by ‘economically inactive’?

A

those willing and able to work but have been withdrawn from the work force due to circumstances

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11
Q

What is the difference between the population of a country and its labour force?

A

the population is everyone residing in the country

the labour force is everyone in the work force

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12
Q

Why do we find that Employment and Unemployment sometimes rise at the same time?

A

Old people leave the workforce

Young people join the workforce

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13
Q

What are the current retirement ages in the UK?

A

65 - 67

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14
Q

What is a ‘discouraged’ worker?

A

able to work but not actively seeking work

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15
Q

What is ‘structural unemployment’?

A

the industrial reorganisation due to technological changes

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16
Q

What is ‘frictional unemployment’?

A

when people jump from one job to another

17
Q

What is ‘seasonal unemployment’?

A

when the industry doesn’t need workers all year round

18
Q

What is ‘demand deficient-’ or ‘cyclical unemployment’?

A

when there’s a lack of demand, usually during times of economic decline or recession

19
Q

What is ‘real wage inflexibility’?

A

when the real wage rate is above the equilibrium wage rate

20
Q

Which of these types of unemployment is most likely to result in long term unemployment?

A

structural unemployment

21
Q

How would a lack of skills in an economy effect the unemployment rate?

A

unemployment would go up

22
Q

What is meant by ‘net inward migration’?

A

the difference between emigration and immigration

23
Q

What is the likely effect of ‘net inward migration’ on employment rates?

A

employment rates go up

24
Q

What is the likely effect of ‘net inward migration’ on unemployment rates?

A

unemployment goes down

25
How does unemployment affect the individual and his/her family?
poverty increases, disposable income goes down, MPS increases
26
How does unemployment affect consumers?
MPC does down
27
How does unemployment affect firms?
reduced profitability as they will have to cut back costs
28
How does unemployment affect those remaining in work?
employees may have loss of productivity and motivation
29
How does unemployment affect government?
loss of incentive to invest
30
How does unemployment affect society?
more poverty, more crime
31
Why might we expect, or even desire, the unemployment rate of an economy to be above 0%?
to maintain stable inflation | for real wage inflexibility