Employment and Unemployment

Question 1

Unemployment Definition

Answer 1

Unemployment refers to the total number of people without work who are actively seeking employment.

(measured by the Unemployment rate)

Question 2

Unemployment Definition (ILO)

Answer 2

An unemployed person is a person aged 15 or over:

• without a job during a given week;
• available to start a job within the next two weeks;
• actively having sought employment at some time during the last four weeks or having already found a job that starts within the next three months.

Question 3

Unemployment Definition Bundesagentur für Arbeit

Answer 3

Unemployment is if someone (15+) is not in an employment relationship or an endeavor to end their unemployment (own efforts) and is available to make use of the efforts of the Employment Agency that are available (availability). The exercise of a gainful employment of less than 15 hours a week does not count as employed.

Question 4

Unemployment Rate

Answer 4

Unemployment rate=Nr. of unemployed / Labour Force x 100= …%

Question 5

4 types of Unemployment

Answer 5

• Frictional
• Seasonal
• Structural
• Cyclical

Question 6

Frictional Unemployment

Answer 6

This is the desirable process of finding work, employers looking for the right worker. In order to help accelerate this process, governments assist people looking for jobs with programs ans qualification surveys.

Question 7

Seasonal Unemployment

Answer 7

Unemployment caused by changes in season (ski, Santa…)

Question 8

Structural Unemployment

Answer 8

Unemployment caused by the demand for your product falling, e.g. coal mining, we use Oil now.

Some skills are no longer needed, e.g. you are trained draughtsman but we use computers now.

Question 9

Cyclical Unemployment

Answer 9

Unemployment resulting from business recessions that occur when total demand is insufficient to create full employment.

Question 10

Natural rate of Unemployment

Answer 10

5% that consist mainly of:

• Frictional
• Seasonal
• Structural
• Voluntary

Unemployment

Question 11

Economic and social Consequences of unemployment

Answer 11

For the Unemployed:
loss of skills and confidence
break-down of family ties
alcoholism and mental / physical illnesses

For the Taxpayer:
Taxes up as (Unemployment benefits)

For the society:
crime and vandalism
social inequalities

For the Economy:
Not producing at its Maximum
—> Economic growth is endangered