4. employment and unemployment Flashcards
employed definition
the number of people in work with a job. means they do mor ethan one hour of paid work per week
what is employment rate ?
the percentage of the population of the working age that is in a job
unemployed definition
those who are without work, able to start work within the next 2 weeks and have been actively looking for work within the past 4 weeks
what is unemployment rate?
the percentage of the workforce that is able and willing to work that is not currently employed
what is workforce ?
those in work or actively seeking work
what is participation rate?
percentage of the working population who are in the labour force. 16-64 yo either working or seeking work
who are part of the active population?
those who are in work or actively seeking work
who are considered inactive?
those who are neither employed or unemployed.
what are the causes/types of unemployment ?
- structural unemployment
- frictional unemployment
- seasonal unemployment
- demand deficiency and cyclical unemployment
- real wage inflexibility
what is structural unemployment?
when the demand for labour is higher than the supply for labour
what is frictional unemployment?
when workers are unemployed for a short peroid of time when switching jobs
what is cyclical unemployment?
unemployment caused by a lack of aggeragate demand (negative output gap) = recession. causing firms to cut costs and let go of workers
what is real wage inflexbibility?
unemployment as a result of real wages being set above the equilibrium wage rate (minimum wage). This causes excess supply of labour but low demand for workers from employees
what is migration?
the movement of people into a new area / country in order to find work or better living conditions
what is immigration ?
coming to live in a counrty
what is emmigration?
leaving a country to live in another
