3.1 A ] Unemployment [D] Flashcards
Why unemployment is a problem ?
- Lost income and output [ production ]
* lost human capital
Definition of an Unemployed person ?
An unemployed person is defined as someone who does not have a job and is willing and available for work at the going wage rate and who is making an effort to find a job.
What 2 groups is the population divided into ?
+ explain ?
- The working-age population = age 15 to 74, no in prison, hospital or institution.
- People under 16 or in institutional care = 3 categories -
A ] In employment
B ] Unemployed,
C ] The economically inactive population.
A ] In employment ?
A ] Employment - Person who worked in the week before the survey for one hour or more for payment or profit, including work on the family farm or business and all persons who had a job but were not in work due to illness, holidays ect.
B ] Unemployed ?
B ] Unemployment - person who in the week before the survey, were without and available for work within the next 2 weeks and had taken specific steps to find work in the preceding 4 weeks or in waiting to start a job.
C ] The economically inactive population
[not in the labour force] ?
c ] The economically inactive population - don’t want a job. who are not in employment or unemployment due to reasons e.g education =, homemakers, retired.
Four labour market indicators ?
- The labour force { LF }
- The unemployment rate
3, The economic activity rate - The employment rate { E% }
Labour market indicators :
- The labour force {LF} ?
+ Formula ?
- The labour force is the number of those considered to be economically active, that is those in employment [ E ] and the unemployed [ U ] or potential workers.
Formula - Labour Force = E + U
Labour market indicators :
- The unemployment rate ?
+ Formula ?
- The unemployment rate is the % of the labour force that is unemployed.
unemployment rate [ U% ] = no.unemployed over labour force x100
Labour market indicators :
- The economic activity rate ?
+ formula ?
- The economic activity rate = called the labour force population rate [ LFPR ] is the no. of persons in the labour force expressed as a % of the working age population.
The LF participation rate = LF over working-age population x100
Labour market indicators :
- The employment rate ?
+ Formula ?
- the employment rate is the % of the working-age population who have jobs.
E rate [E%] = [E divided working-age population ] x100
or
E rate [E%] = LFPR x (1-U rate)
The official measure is an imperfect measure as it excludes ?
A ] Discouraged workers
B ] Others who want a job
A] Discouraged workers ?
A] discouraged worker is a person who is available and willing to work but who has to stopped actively looking as they believe no jobs are available.
B] Others who want a job ?
B] Other who want a job are economically inactive, wiling to work but have to stopped actively looking for a job because they are not available to start a job in the next 2 weeks.
