2.3 unemployment lesson Flashcards
What does in employment mean?
people who are either working for firms and organisations or self employed.
What is the level of unemployment?
The. total number of people who are unemployed
What is the rate of unemployment?
1- how do you work it out?
2- what does It show?
1- unemployed divided by active labour force.
(unemployed/ active labour force)
2- it shows the unemployed population as a percentage
of the economically active population.
What is meant as the labour force/ workforce?
What is the formula for active labour force?
People who are economically active either employed or unemployed.
Active labour force = Employed+ unemployed.
What is meant by economically inactive?
Those people of working age who are not looking for work, for a variety of reasons.
What is meant by discouraged workers?
People who have been unable to find employment and are no longer looking to find work.
Define structural unemployment.
Unemployment due to the decline of an industry. Eg industry moving jobs abroad.
Define cyclical unemployment?
Unemployment due a downturn in the economy.
In the phase of a recession.
What is meant by frictional unemployment?
Unemployment caused by the time it takes to find a new job once a job has been lost. (time between losing a job and finding a new one)
What is youth unemployment?
People between the ages of 16-24 who are unemployed.
Why is youth unemployment undesirable?
Because if they are unemployed at (16-24) they are likely to become discouraged workers which will lead them to not getting employed which can decrease growth in the economy.
What is Voluntary unemployment?
When an individual chooses not to take a job at the current wage.
