2.3 Employment Flashcards
What is the difference between employment and unemployment
Employment refers to individuals who are working, either part-time or full-time. Unemployment refers to individuals who are actively seeking work but are unable to find a job.
What is the policy objective of full employment
The goal of full employment is to ensure that everyone who is willing and able to work has a job. It is usually considered when the unemployment rate is at its natural rate, meaning there is minimal cyclical unemployment.
What are the Labour Force Survey (LFS) and Claimant Count measures of unemployment?
Labour Force Survey (LFS): A survey that measures unemployment based on people actively seeking work and available to start within two weeks.
Claimant Count: Measures unemployment based on the number of people receiving unemployment benefits.Labour Force Survey (LFS): A survey that measures unemployment based on people actively seeking work and available to start within two weeks.
Claimant Count: Measures unemployment based on the number of people receiving unemployment benefits.
What are the causes of unemployment
Cyclical (economic downturns), structural (mismatch of skills and jobs), frictional (temporary transitions), seasonal (industry-related fluctuations). Technological, Voluntary.
What are the consequences of unemployment
Reduced income for individuals, lower national output, increased government spending on benefits, social issues like poverty and inequality.
What are the effects of achieving full employment
Full employment leads to higher living standards, increased production, and more government revenue. However, if it is achieved too quickly, it may cause inflationary pressure.
