Causes of Unemployment Flashcards
What are the six causes of unemployment?
demand deficient, structural, frictional, seasonal, technological, regional
How does demand deficiency relate to unemployment?
the demand for labor is derived from the demand for goods and service that the labor produces
What does ‘structural’ mean?
when there are differences between the characteristics workers have e.g. skills required by employers
What does ‘frictional’ mean?
refers to the period of time when a worker is moving between jobs
What does ‘seasonal’ mean?
unemployment that occurs through seasonal fluctuations in demand throughout the year
How does technology relate to employment?
increasing the degree of automation in the production process means that fewer workers are required
How is productivity calculated?
as a ratio of GDP to hours worked.
