6) Unemployment - MB Flashcards
Define in employment
(Employed) people who are either working for firms or other organisations, or self employed
Define economically inactive
Those people of working age who are not looking for work, for a variety of reasons
Define discouraged workers
People who have been unable to find employment and who are no longer looking for work
Define workforce
People who are economically active - either in employment or unemployed
Define unemployed
People who are economically active but not in employment
Define full employment
A situation where people who are economically active in the workforce and are willing and able to work (at going wage rates) are able to find employment
Define claimant count of unemployment
The number of people claiming JSA each month
What is JSA?
Jobseeker’s Allowance, a benefit for people who are not in full-time employment (work less than 16 hours per week), are capable of working and are looking for work
Define ILO unemployment rate (Labour Force Survey unemployment)
Measure of the percentage of the workforce who are without jobs, but are available for work, willing to work and looking for work
People employed contribute to…
The factor of production Labour
Full employment is a…
Macroeconomic policy objective
What is the benefit of few unemployed and high level of employment ?
Reduce the opportunity cost of inactive Labour and leads to higher economic output
Full employment does not mean…
That unemployment is zero
Why might some people not be in employment?
At any given time, some people will be between jobs or searching for better employment
What percentage is considered to be full employment?
In the UK below 4% unemployment could be considered full employment
Why might full employment not necessarily be a good thing?
As getting additional workers is more expensive, pushing inflation, cost push inflation
September to November 2022 estimates shows an… in the unemployment rate and a… in the economic activity rate, the employment rate was…
1) increase
2) decrease
3) largely unchanged
What does LFS stand for?
Labour Force Survey
How does the LFS work?
It is internationally organised, it is calculated by doing a survey of 60,000 households every 3 months
Why is the LFS good?
It gives a fuller picture of unemployment and it is good for international comparisons
What is a disadvantage of a LFS?
But LFS is a survey, not a census, so could be subject to sampling errors
How does a claimant count work? Is it better than an LFS?
Is the monthly count of those actively claiming unemployment benefits, and is accurate as it is a census
Why are comparisons between LFS and the claimant count somewhat invalid?
The rules for JSA change overtime, making comparisons overtime somewhat invalid
What are the disadvantages of JSA?
- Many genuine unemployed do not claim due to stigma, or because they do not meet the criteria
- some who do claim may work in the informal economy
