2.1.3 Unemployment and employment Flashcards
what does unemployment mean?
when people are without a job who have been actively seeking work in the last four weeks and ready to work in the next two weeks
what does inactive mean?
people of working age not looking for jobs eg disabled and students
what’s the labour force?
the total of active people,unemployed and employed
how’s unemployment measured?
-the labour survey,asks 6000 households wether they classify as employed,unemployed or economically inactive
-the claimant count,counts the number of people seeking job seekers allowance
positives of using the labour survey?
-comparisons of different countries and time periods
-provides a rich set of data
limitations of using the labour survey?
-will be sampling errors
-time consuming and expensive
-only collected quartley so may not pick up changes
positives of using the claimant count?
-should show the exact number of people unemployed
-datas produced monthly
-easily compare regions
-easy to classify if someone is actively seeking work
limitations of using the claimant count?
-a lot of unemployed people don’t meet the criteria for collecting unemployment benefit
-people may be too proud to claim
what’s underemployment?
when people are looking;
-looking for a new job
-wanting more hours at their current job
-under utilised in terms of their ability/qualifications
what’s the significance of falling unemployment?
-extra tax for govt. and sevre social costs decrease
-extra spending from expanding labour market may worsen current account,risk in acceleration in demand-pull inflation and cost-plus inflation
policies to reduce unemployment?
supply side
- education and training
- geographical subsidies
- remove market regulations
- employment subsidies
- lower min wage/ reduce trade union power
demand side
- reduce interest rates
- cut tax + increase govt spending
- depreciation of exchange rate
economic impacts of unemployment?
-slower long run trend of economic growth
-risks period of deflation because of falling demand
-rising income inequality
social impacts of unemployment?
-loss of work experience
-reduced employabilty
-gaps in CV
impact of migration on the labour market?
dependent on
- migrant skills
-skills of existing native worker
-the characterisitcs of the host economy
structural unemployment?
lack of suitable skills available
