25 Flashcards
Employment
Relationship between two parties (employer & employee)
what does Level of unemployment refer to
total number of workers unemployed
unemployment rate
number of unemployed people as a percentage of the labour force
Unemployment rate (EQ)
(n unemployed / n labour force) x 100
Claimant count measure
considers those who register as unemployed to claim benefits
labour force survey measure
survey asking about employment situation
Frictional unemployment
Temporary unemployment caused by :
.voluntary unemployment
.search unemployment
.seasonal unemployment
Structural unemployment
Unemployment caused by structural economic changes
Cyclical unemployment
unemployment caused by a lack of AD
Real-wage unemployment
When wages are stuck above the equilibrium wage
Individual Costs of unemployment
.No income
.More likely health problems
.Loss of skills
.more likely family issues
Firm costs of unemployment
.Choice of potential employees
.Quicker response to change in supply or demand
.Less costs
.Lower demand for their good / service
Economical costs of unemployment
.Ouput will fall under potential
.Lower living standards
.Lower tax revenue
.Increase in government spending
