CHAPTER 35 EMPLOYMENT AND UNEMPLOYMENT

Question 1

Active population

Answer 1

Those in work or actively seeking work; also known as the labour force

Question 2

Activity rate or participation rate

Answer 2

The number of those in work or unemployed divided by population of working age as a percentage

Question 3

Cyclical or demand-deficient unemployment

Answer 3

There is insufficient demand in the economy for workers who wish to work at current wage rates to obtain a job

Question 4

Employed

Answer 4

number of people in paid work

Question 5

Employees

Answer 5

Workers employed by another individual or firm

Question 6

employment

Answer 6

those in paid work

Question 7

Employment rate

Answer 7

Number of those in work divided by population of working age expressed as a percentage

Question 8

Frictional unemployment

Answer 8

When workers are unemployed for a short period of time between jobs

Question 9

Full-time workers

Answer 9

Workers who work the hours and days that are normal for particular job

Question 10

Hidden employment

Answer 10

Partly those in the population who would take a job if offered, but are not in work and are not currently seeking work; and partly those who are underemployed

Question 11

Inactive

Answer 11

Number of those not in work and not unemployed

Question 12

Inactivity rate

Answer 12

The number of those not in work and not unemployed divided by the population of working age expressed as a percentage

Question 13

Labour force

Answer 13

Those in work or actively seeking work

Question 14

Long-term unemployed

Answer 14

In UK, those unemployed for more than a year

Question 15

Part time workers

Answer 15

Workers who only work a fraction of the hours and days which are the norm for a particular job

Question 16

Population of working age

Answer 16

The total number of people aged between the statutory school leaving age and the state retirement age

Question 17

Real wage or classical unemployment

Answer 17

occurs when wages are set above the equilibrium level causing the supply of labour to be greater than demand.

Question 18

Seasonal unemployment

Answer 18

occurs when people are unemployed at particular times of the year when demand for labour is lower than usual.

Question 19

Structural unemployment

Answer 19

Those workers who are unemployed due to permanent shifts in how the economy works, often driven by processes like technological change.