dp3

Question 1

Unemployment rate

Answer 1

• Occurs when someone is willing / able to work but does not have paid job
• Unemployment rate is percentage of people in labour force who are unemployed

Question 2

define job vacancies

Answer 2

refer to number of positions advertised by employers that is unfilled. Representing demand for labour.

Question 3

define underutilisationr ate

Answer 3

sum of number of people unemployed and number of underemployed expressed as proportion of Labor force. Extent to which available supply of labour is not working at its capacity.

Question 4

3 main types of uneployment

Answer 4

structural
cyclical
structural

Question 5

Cyclical unemployment:

Answer 5

unemployment results from changes in economic activity over business cycle. Either economic downturn or upturn. During economic contraction, firsm don’t need to produce as many g/s to meet demand. To lower costs, some will reduce number of employees in workforce.

Question 6

Structural unemployment:

Answer 6

unemployment from mismatch between jobs available and people looking for work. Can be due to technological advances their fore jobseekers not having skills required for job. May be difficult to find work in another industry as the need to develop new skills and move to different regions arises.

Question 7

Frictional unemployment:

Answer 7

where a person is unemployed for a period while they are moving from one job to another.

Question 8

Hidden unemployment:

Answer 8

people who would like to work but are discouraged from seeking jobs for various reason such as repeated failure to find work. Essentially people who would accept a job if it was available. There have given up actively looking for work due to repeated failure. Hence hidden to workforce.

Question 9

Underemployment:

Answer 9

workers having more to give to society and full potential not utilised. E.g part timer workers who want to be full time / casual workers who want more hours.

Incase of economic downturn, ifirm will reduce number of work hours rather than reducing employees therefore become unemployed rather than cyclically unemployed.

Question 10

Long term unemployment –

Answer 10

referring to being without paid work / have been looking for work for a year / more

Question 11

Seasonal unemployment

Answer 11

occurs during times of year as seasonal patterns affect job. Many workers come from tourism and agricultural industries e.g ski instructors, fruit packers