Aggregate labour market Flashcards
1
Q
The economically active
A
Have a job or are willing and able to
2
Q
Employment rate
A
Number of employed/Working age population
3
Q
2 costs of unemployment
A
Under-utilisation of workforce
Worse living standards
4
Q
Why is unemployment rate an imperfect barometer (2)
A
Depends on:
Claimant account- issues of people unemployed but not claiming
LFS- Sample which may not be representative
5
Q
2 benefits of labour market fexibility
A
Lower NRU as can adjust to structural changes
Can cope better with external shocks
6
Q
5 factors affecting labour market flexibility
A
Mobility of labour Wage flexibility Skills and training Ability to hire and fire Barriers to entry and exit
