Definitions Employment/Unemployment CH30

Question 1

Employment

Answer 1

The use of factors of production in the economy, such as labour

Question 2

Unemployment

Answer 2

When people of working age and are both willing and able to work but cannot find employment

Question 3

Full Employment

Answer 3

Means that everyone in a country who is willing and able to work has a job

Question 4

Formal sector employment

Answer 4

Officially recorded employment, where workers pay income taxes and the contribute to the country’s official gdp

Question 5

The Female Participation rate

Answer 5

Measures the proportion of woman who are active in the labour force. As economies become more developed this tends to increase.

Question 6

The Claimant count

Answer 6

Measures the number of people who are out of work and claiming unemployment benefits

Question 7

The Labour Force Survey (LFS)

Answer 7

Uses the ILO’s standardized household-based survey to collect work-related statistics

Question 8

Unemployment rate

Answer 8

A measure of the percentage of a country’s workforce that is out of employment

Question 9

Frictional unemployment

Answer 9

Transitional unemployment which occurs when people change jobs or are in-between job

Question 10

Structural unemployment

Answer 10

occurs when the demand for products produced in a particular industry continually falls, often due to foreign competition

Question 11

Cyclical unemployment

Answer 11

Unemployment caused by a lack of demand, which causes a fall in national income. It can affect every industry in an economy. Decrease in aggregate demand