4.5 Unemployment Flashcards
How can someone in an economy be considered unemployed?
- Of working age (15-65)
- Willing to work
- Available to start work immediately
- Actively seeking work
What is the labour force?
The total added number of people of working age who is both willing and able to work
What makes up the working age population?
The labour force and economically inactive
What makes up the labour force?
The employed and unemployed
How do you calculate the unemployed rate?
Number employed/Labour force x100
What are the methods of determining the number of employed?
- The labour force survey
- The claimant account
What are the causes of unemployment?
- Technological
- Frictional
- Cyclical
- Seasonal
- Structural
What is the labour force survey?
An extensive survey sent to a random sample of households
What is the Claimant count?
A count of the number of people claiming unemployment benefits
What is technological unemployment?
A type of unemployment that occurs when machinery replaces human labour
What is frictional unemployment?
A type of unemployment that occurs when an person is either switching between jobs for more opportunities or entering the labour force for the first time
What is seasonal unemployment?
A type of unemployment that occurs when their skills for the labour isn’t needed at certain time in the year usually associated with the weather
What is cyclical unemployment?
A type of unemployment that occurs naturally during the economic cycle, during an economic recession where demand falls leading to less revenue which means firms let workers go to cut their cost so their profits remain the same
What is structural unemployment?
A type of unemployment that occurs when the skills of the labour force doesn’t match with the current demand in the economy, caused by a change in structure in the economy
