Employment Flashcards
What is employment?
Being economically active (usually in a paid role)
What is unemployment?
Someone of working age and available for work but without a job.
What is underemployment?
Someone who wants full time work but can only find part time work.
OR skilled workers who are only able to find unskilled work.
What is seasonal unemployment?
When the employment is only demanded for a short period of the year, such as summer/winter tourism and hospitality.
What is demand deficient/cyclical unemployment?
When there is not enough demand/jobs to employ all those who want to work.
What will happen to demand deficient/cyclical unemployment over the economic cycle?
During a boom, demand will be high and firms will be employing large numbers of workers meaning demand deficient unemployment will be low.
During a recession, demand will begin to fall and firms will be laying off workers, so demand deficient unemployment rises.
What is frictional unemployment?
When someone loses their job (or leaves their job) and has to look for another one.
What is the link between frictional unemployment and the job market?
The more efficient the job market is at allocating people to jobs, the lower frictional unemployment will be.
How does frictional unemployment link to the economic cycle?
The better the economy is doing, the lower frictional unemployment will be.
What is structural unemployment?
Unemployment which occurs as the structure of the industry changes most oftenly because of technology.
What can be the cause of structural unemployment?
Changing fashions
Improved technoology
The service/good is no longer in demand
What does the extent of structural unemployment depend upon?
Mobility of labour
The pace of change in the economy
The regional structure of the industry.
How does mobility of labour affect the extent of structural unemployment?
If people are able to quickly switch from jobs in a declining industry to a rapidly growing one, there will be less structural unemployment.
How does the pace of change in the economy affect the extent of structural unemployment?
The faster the changes taking place in peoples tastes and demand and supply, the more structural unemployment there will be as industries have to adapt more quickly to change.
How does the regional structure of industry affect the extent of structural unemployment?
If industries that are dying are concentrated in one area then this may make it more difficult for people to find new jobs e.g mining and shipbuilding.
