ECON (INFLATION AND UNEMPLOYMENT) Flashcards
*Refers to the condition and extent of joblessness within
an economy
Unemployment
if he or she is not working and
(1) has made specific efforts to find a job during the last
four weeks, (2) is laid off from a job in the succeeding
months.
A person is unemployed
Causes of Unemployment
*A person might be a new graduate or new entrant into the
labor force
*A person who quit a job in search for other employment may be
considered as unemployed while he/she is searching
*A person may be laid off from work
*A worker may lose his/her job by being fired or because the
company closes down
Types of Unemployment
- frictional
- Cyclical
- Structural
- Seasonal
- Social Impact
*Transitional type of unemployment which happens
when people move from one job to another
Frictional unemployment
*Arises because of the incessant movement of people
between regions and jobs or through different stages of
the life cycle
frictional unemployment
*A result of temporary transitions made by workers and
employers or from workers and employers having
inconsistent information about the job they applied and
hired to
Frictional Unemployment
*Results from the ups and downs of business cycle of the
country
Cyclical Unemployment
*Exists when the overall demand for labor is low
Cyclical Unemployment
*Also occurs when there is a recession in the economy
Cyclical Unemployment
*Results from the mismatch between the available skill and
the requirements in the labor market
Structural Unemployment
*Results from seasonable changes in the labor supply
Seasonal
*An unemployed individual experiences psychological
deterioration due to anxiety and worry of not being able
to find work and provide financial support to his family
Social Impact
can also lead to social
deterioration
Psychological Deterioration
*The economic condition characterized by a large and
sudden increase in the general level of prices of goods and
services
Inflation
