2.3.2 Employment and unemployment Flashcards
Main measures of unemployment
- the claiment count = counts the total number of recipients of Job Seeker’s Allowance (JSA) added to those looking for work to claim Universal Credit (UC).
- Labour Force Surveyn= asks 60-70,000 UK households to self- classify as being employed, unemployed or economically inactive.
Types of unemployment
- cyclical
- structrual
- frictional
- seasonal
- volentary
- non-volentary
cyclical unemployment
= due to periods in econ cycle where spending falls below amount needed to generate full employment
* if spending output = low then wrokers producing that output no longer required
* closely linked to any negative output gaps, if below trend rate - demand for workers isn’t high enough
structural unemployment
= due to LT changes in labour markets, certain industries growth while others decline.
* may not be able to switch to another industry - lack skillset/training
* also from regional unemployment, ppl not willing to move or attract business in certain areas.
* global factors impact - emerging nations, cheaper goods - more price comp
frictional unemployment
= due to movements into and out of the job market, ppl between jobs
* most is ST, can be longer due to lack of info, insufficient training, too generous welfare benefits
* reduction requires improvements in helping find vacancies or create stronger incentives
seasonal unemployment
seasonal workers, such as construction workers, retail assistants, might be without paid jobs due to the time of year when there is less need for their work
volentary
can find work at going wage rate but choose not to
involentary
when wrokers cannot find work in labour market
demand and supply factors
- D = cyclical caused by lack of AD
- frictional + structrual caused by issues w/ productie potential of economy
- in order to minimise unem - likely gov will use combo of policies relating to AS+AD
real wage unemployment
caused by wages being too high relative to the productivity of workers; minimum wages and trade union activity can push the wage above
its market equilibrium,
factors = trade union pressure to raise wages, gov setting minimum wage
gig-economy
= work arrangement where people perform short-term, flexible, and often freelance work, typically through online platforms or apps,
e.g. rideshare drivers, virtual assistants, and food delivery workers.
linked to zero-hour contracts.
Working population
total number of individuals who are of working age, typically considered to be those who are capable of and available for work. It includes both employed and unemployed individuals.
Unemployed
someone of working age, willing and able to work, and actively seeking work, but cannot find a job.
technological unemployment
the displacement of human workers by machines, automation, and technology, such as AI.
Rapid advances in technology raises concerns about the potential for job loss, economic inequality, and the need for retraining and upskilling workers to adapt to evolving job markets.
the natural rate of unemployment
the unemployment rate that occurs when the market is at equilibrium
- exists even if AD is high
