chapter 20 - employment and unemployment

Question 1

unemployment

Answer 1

willing to work but cannot get a job

Question 2

voluntary unemployment

Answer 2

those who chose not to work

Question 3

under employment

Answer 3

those who work part time but want a full time position or those with higher skill levels doing lower skilled jobs

Question 4

economically inactive population

Answer 4

anyone in the ages of 16 - 64 who are either sick or voluntary unemployed

Question 5

claimant count

Answer 5

unemployed looking for a job and receiving benefits

Question 6

Labour force survey

Answer 6

unemployed but looking for a job

Question 7

what are the consequences of unemployment on the government

Answer 7

1. leakages
2. increased benefit costs
3. loss of tax income
4. increased training and retraining costs

Question 8

consequences of unemployment on businesses

Answer 8

1. loss of spending on. oral goods and services
2. can be an opportunity to reduce wages (+)
3. increased pool of labour (+)
4. inferior goods opportunity for firms - negative YED (+)
5. likely to defer expansion/ investment

Question 9

consequences of unemployment on individuals

Answer 9

1. decreased consumption because less purchasing power means a falk in living standards
2. unemployed lose difference between wages and benefits
3. increased inequality and relative poverty
4. loss of status, respect and social contact
5. Links to social issues sucha s mental health and even crime

Question 10

structural unemployment

Answer 10

caused by changes in the structure of industry

Question 11

technological unemployment

Answer 11

tyoe of structural unemployment, people may be replaced by machines or computers or may not have skills for newly created jobs

Question 12

occupational immobility

Answer 12

occurs when people have skills that are specific to a declining industry. if they are unable to retraining may be unemployed for a long time

Question 13

skills missmatch

Answer 13

the unemployed cannot fill the vacancies that exist

Question 14

what should the demand for labour that isn’t being met cause

Answer 14

1. inflation of certain sectors
2. businesses should focus training / development in those areas
3. May mead to the use of technology to replace the need for individuals

Question 15

geographical immobility

Answer 15

occurs when there are jobs in an area but people are unable to move

Question 16

demand deficiency unemployment and its effects

Answer 16

AKA cyclical unemployment
happens when the economy is in slow down or recession.
- people have less money to spend
- firms can’t sell as much and need fewer workers
- negative multipliers

government may need to step in

Question 17

frictional unemployment

Answer 17

occurs even poeppe are between jobs

Question 18

natural unemployment

Answer 18

frictional + structural. the lowest level of unemployment for a productive economy

Question 19

seasonal unemployment

Answer 19

people are employed on shirt term contracts but then laid off