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 the population of working age expressed as a percentage

Question 3

Cyclical or demand-deficient unemployment

Answer 3

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

Question 4

Employed

Answer 4

The number of people in paid work

Question 5

Employees

Answer 5

Workers employed by another individual or a firm

Question 6

Employment

Answer 6

Those in paid work

Question 7

Employment rate

Answer 7

The number of those in work divided by the population of working age expressed as a percentage

Question 8

Frictional unemployment

Answer 8

When workers are unemployed for short lengths of time between jobs

Question 9

Full-time workers

Answer 9

Workers who work hours and the days which are the norm for a particular jab.

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

The 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; also known as the active population

Question 14

Long-term unemployed

Answer 14

In the UK, those unemployed for more than one year

Question 15

Part time workers

Answer 15

Workers who only work a fraction of the hours and the 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 requirement age

Question 17

Real wage or classical unemployment

Answer 17

When workers are unemployed because real wages are too high and inflexible downwards, leading to insufficient demand for workers from employers

Question 18

Seasonal unemployment

Answer 18

When workers are unemployed at certain times in a year, such as building workers or agricultural workers in the winter.

Question 19

Self-employed

Answer 19

Workers who work on their own account and are not employees

Question 20

Short-term unemployed

Answer 20

In the UK, those unemployed for les than a year

Question 21

Structural unemployment

Answer 21

When the pattern of demand and production changes leaving workers unemployed in labour markets where demand has shrunk. Examples of structural employment are regional unemployment, sectoral unemployment or technological unemployment.

Question 22

Underemployed

Answer 22

Those who would work more hours if available or are in jobs which are below their skill level

Question 23

Unemployed

Answer 23

Those not in work but seeking work

Question 24

Unemployment

Answer 24

Occurs when individuals are working without a job but are actively seeking work

Question 25

Unemployment rate

Answer 25

The number of those not in work, but seeking work, Divided by the labour force expressed as a percentage.