3Y: Economic Indicators - Employment Levels

Question 1

What is the Labour Force?

Answer 1

The Labour Force refers to all those people of working age (16-65) who are willing and able to work.

This does nto include retired people, full time students or those who have an illness or disability that prevents them from working.

Question 2

What is the definition of ‘employed’?

Answer 2

Members of the labour force who are able to find work are said to employed.

Question 3

What is the definition of ‘unemployed’?

Answer 3

Members of the labour force who are unable to find work are classified as unemployed.

Question 4

What types of economy have low levels of unemployment?

Answer 4

Healthy and growing economies tend to have low levels of unemployment.

Question 5

How is the Unemployment Level calculated?

Answer 5

Number of unemployed people x 100

Total number in Labour Force

Question 6

What is Full Employment?

Answer 6

Full employment refers to a situation where almost all members of the labour force are employed.

In ireland, an unemployment rate of around 4% is considered full employment.

Question 7

What are the effects of High Unemployment for Households? (3)

Answer 7

1. Decrease in consumer demand for goods and services.
2. Many households will have a lower standard of living. Those facing long term unemployment may suffer from poverty.
3. Some workers may have to emigrate to find work.

Question 8

What are the effects of High Unemployment for Businesses? (2)

Answer 8

1. It may be harder to attract extra finance as investors amy be unwilling to invest at a time of falling demand.
2. A reduction in sales and profits with consumers having less disposable income.

Question 9

What are the effects of High Unemployment for the Economy? (3)

Answer 9

1. Reduced economic activity due to a reduction is disposable income.
2. Social problems may increase and shadow economy may grow.
3. The emigration of highly qualified or skilled workers make Ireland a less attractive loaction for Foreigh Direct Investment (FDI). Called the brain drain,

Question 10

What are the effects of Low Unemployment for the Economy? (2)

Answer 10

1. More money in taxes, which means more money being spent on services.
2. Less money paid out for social protection payments.