3.2 Unemployment key terms

Question 1

define the term employment

Answer 1

the use of labour in the economy to produce goods and services

Question 2

define the term unemployment

Answer 2

occurs when workers able and willing to work at the current wage rates are unable to find employment

Question 3

define the term Claimant Count

Answer 3

the method of measuring unemployment according to the number of people who are claiming unemployment-related benefits

Question 4

define the term level of unemployment

Answer 4

the number of people in the working population who are unemployed

Question 5

define the term rate of unemployment

Answer 5

the percentage of the country’s workforce that is unemployed

Question 6

define the term seasonal unemployment

Answer 6

lack of employment caused by a fall in demand during a particular season

Question 7

define the term frictional unemployment

Answer 7

lack of employment caused by time lags when workers move between jobs

Question 8

define the term structural unemployment

Answer 8

unemployment is caused by a permanent decline of an industry or industries

Question 9

define the term cyclical unemployment

Answer 9

lack of employment caused by a lack in demand in the economy