8.2 Employment and unemployment Flashcards
What is the definition of unemployment?
The number ofpeople looking for work but who cannot find a job at a point in time
What is the level of unemployment?
The number of people who are unemployed
What is the rate of unemployment?
The number of people unemployed as a % of the labour force
What is the claimant count survey?
The number of people claiming Job Seekers Allowance
What is the labour force survey?
Shows all people out of work even those who aren’t claiming benefits
What are the problems with the claimant count survey? (5)
Not everyone who’s eligible signs on
Self-employed workers who are temporarily unemployed tend not to claim
Under 18s and over 60s don’t count
Changing criteria for JSA
Some people who claim JSA aren’t actively seeking work
Why could the Labour force survey be considered a better measure of unemployment? (5)
Internationally recognised
Potential for analysis of data
Picks up trends in sectors
Better guide for policy makers
Generally accepted to be more accurate
What/who will unemployment have consequences for?
The economy
Businesses
The unemployed
What are the consequences of unemployment on the econmomy?
Lost output
Increased government spending
Lost tax revenue
What are the consequences of unemployment on businesses? (4)
Reduced demand for goods/services
Reduced productivity
Reduced profitability
Less incentive to invest
What are the consequences for the unemployed? (5)
Lower living standards Social costs Financial costs De-skilling Reduced chances of finding work
What are the 6 types of unemployment?
Cyclical Frictional Seasonal structural Technological Regional
Demand-side unemployment:
How can this be shown?
Keynesian model with downwards shift in AD
Supply-side unemployment:
How can this be shown?
SRAS diagram with a left shift of SRAS
Demand-side unemployment:
What types of unemployment can cause this?
Cyclical, seasonal and frictional
