2.3 Employment

Question 1

Define employment

Answer 1

people who are working for firms or self employed

Question 2

Define unemployment

Answer 2

people of working age willing and able to work and are actively seeking a job but aren’t actively employed

Question 3

Define cyclical unemployment

Answer 3

Unemployment that arises during the downturn of the economic cycle, such as a recession

Question 4

Define structural unemployment

Answer 4

Unemployment that arises from changes in a pattern of economic behaviour in an economy (e.g. geographical and occupational immobility think miners)

Question 5

Define frictional unemployment

Answer 5

Unemployment associated with people between jobs

Question 6

Demand deficient unemployment

Answer 6

Unemployment that arises as a result of a lack of AD and therefore low derived demand for labour

Question 7

what does the labour force survey measure

Answer 7

calculates employed, unemployed, economically inactive,

Question 8

Issues with labour force survey

Answer 8

sample size is very small, very expensive to run, doesn’t account for hidden unemployed, inactive groups, the under-employed and disparities around the country

Question 9

What does the claimant count measure

Answer 9

The number of people claiming job seeker’s benefits a month

Question 10

issues with claimant count

Answer 10

difficult to compare between countries, not everyone can/will claim, could be subject to fraud

Question 11

Consequences of unemployment

Answer 11

Individual loss of earnings, nation not operating at full employment, costs to society like crime and vandalism

Question 12

Effects of full employment

Answer 12

Economy producing at maximum capability, making best use of scarce resources