33 Employment Flashcards

1
Q

Employment

A

Number of people of working age in the population who are in work

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2
Q

Employment rate

A

Proportion of the working age population in work

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3
Q

Unemployment rate

A

Proportion of working age seeking work (economically active) but who do not have a job

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4
Q

Voluntary unemployment

A

When an individual chooses not to accept a job at the going wage rate.

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5
Q

Involuntary unemployment

A

When an individual would like to accept la job at the going wage rate but is unable to find employment

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6
Q

Labour market participation rate

A

Proportion of working age people who are economically active (in employment or actively seeking )

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7
Q

Economically active

A

Working age people where who are neither in employment nor unemployed and so are not part of the labour force

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8
Q

Full employment

A

When all choose that are economically active and are willing and able to work have a job.
- economy is making effective use of its resource of human capital stock l. e. Labour force
- no spare capacity and will operate on PPC

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9
Q

Labour force survey

A

Measure of Tue percentage of the workforce who are without jobs but are available for work, looking for work and willing to work

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10
Q

Occupational immobility

A

Barriers to workers changing occupations

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11
Q

Geographical immobility

A

Barriers to the movement of workers between regions

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12
Q

Advantages of labour force survey

A

_ Measure can be used to make international comparisons

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13
Q

Disadvantages of labour force survey

A
  • surveying households and extrapolating data from a sample
  • not July representative
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14
Q

Claimant count

A

Measure of the number of people registered as unemployed and claiming job seekers annoyance

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15
Q

Advantage of claimant count

A
  • conducted cheapus and Cassius as government already has record of number of people claiming JSA
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16
Q

Disadvantages of claimant count

A
  • Excludes unemployed that are unable or unwilling to claim JSA
  • not all countries have benefit system so can’t wake international comparisons
17
Q

Frictional unemployment

A
  • Associated with job search (between jobs)
  • frictional unemplyment normals exists to some degree and does not indicate any weakness in the economy
  • short term
18
Q

Cyclical unemployment

A
  • Unemployment that arises throughout the course of the economic cycle i. e . Recession
  • demand for and supply of labour changes resulting in a lower demand sur labour during recession
  • short term cause but car be damaging to fuel economy as a large number of workers cal be made redundant at the same time
19
Q

Demand - deficient unemployment

A
  • Unemployment arises because of a deficiency in aggregate demand in the economy I,e. equilibrium level of output is below sou employment
  • forms make workers redundant because they want to reduce their output in response to less demand,
  • can be damaging because workers from a particular industry are all made redundant
  • short term
20
Q

Seasonal unemployment

A
  • Unemployment that arises during certain seasons of the year
  • fruit pickers
  • damage to the economy depends on the reliance on primary sectors
  • Can signify structural weaknesses in the economic is it results greater long-term unemployment because it suggests occupational immobility
21
Q

Consequences of unemployment

A

-Lower gross domestic product- represents significant wastage of economic resources the loss of output could have effect knock-on effect of firms willingness ability to invest
- lower standards of living - household incomes fall consumers are not able to purchase products which would boost material living standards
- greater income inequality - structural unemployment can result in greater disparity
- pressure on gov finances - under pressure one to greater payments of benefits and lower tax revenue
- hysteresis effect- the deterioration of someone’s skills through long period of unemployment making them less productive und increase probability of long term unemployment
- higher rates of unemployment -more serious costs are likely to be
- long term unemployment - lower rate for longer time would might be more damaging than high rate for very short term
- Wages - one benefit from higher rate of unemployment - reduced wage rate and reduced wage inflationary pressure

22
Q

Effects of full employment

A
  • Operating efficiently
  • not experiencing negative consequences of high unemployment
  • operating at full capacity runs risk of experiences demand-puII inflationary pressure when rise In AD
  • workers in employment but not using skills to full extent - lower skilled job than qualifications