economics of unemployment Flashcards
what’s the Uks unemployment
4% 1.39 million
defne unemployed
anyone between the age of 18-67 who is able available and actively seeking employment
what are the 2 measures of unemployment
claimant count and labour force survey
what are the three types of unemployment
fictional cyclical and structural
define frictional unemployment
the process of changing jobs which may involve a period out of work
define cyclical unemployment
number varies according to the business or economic cycle
define structural unemployment
when there’s a mis match between the skills of those unemployed and the skills that new jobs require mostly happens when there’s a change in the structure of an economy
define occupational immobility
there skills are not required or suitabke for existing job vacancies
what are some reasons for decline in an industry
workers replaced by machinery
products made cheaply overseas
products become obsolete
what is geographical immobility
when an individual is not able to acquire a job in a different area which is available due to certain factors such as high costs of family ties
define hidden
unemployment which is known to exist but not included in the official government figures also can refer to a persons skills being unemployed rather than the person
explain real wage unemployment
when the market wage rate is above the equilibrium rate so businesses demand fewer workers but more workers want to work
define fiscal drag
because if a pay rise they are dragged into a higher tax band
define duty
specific tax at a specific rate on specific products
define direct tax
tax on income
