Employment and Unemployment Flashcards
What is the L.F.S
A survey mandatory for all E.U countries to conduct which measures unemployment by the ILO’s definitions of employed, unemployed, underemployed and economically inactive
What is the Claimant Count
The amount of people in the U.K on benefits
How is the Claimant Count conducted
Measures the number of claimants on a particular day each month joining and leaving the count
Amount of people on JSA
Drawbacks to the Claimant Count
Only an estimate
How is the LFS conducted
Conducted quarterly
Drawbacks to the LFS
Only an estimate
Conducted quarterly - doesn’t cover everything in the labour market
Sample - not fully representative
Advantages to the LFS
Allowed to make comparisons with other countries
Can make historical comparisons - Barely changed how it’s been conducted
Define Employed
Working more than one paid hour a day for a week or more than 15 unpaid hours in the family business
Define Unemployed
Actively looking for work in the past 4 weeks and are willing and able to work within 2 weeks
Define Underemployed
People who are working a job that doesn’t utilise their skill set to its full potential
How does migration affect employment
Helps firm boost employment rate
Immigrants could take U.K citizens job - boosting unemployment
Employment increases without an increase in unemployment
Supply of labour is increased - reduces wage rate and equilibrium price of labour
Affects low skilled UK workers
What is the Unemployment Effect
Consumers - Less to Spend - Less Choice + Lower Prices
Firms - Less Productive - Leads to a Fall in Profit
Lower Wages - Less Available Candidates to Employ
Government - Lower Income + Higher Expenditure - Budget Defecit
What is Structural Unemployment
When industry in an area shuts down
Describe Structural Unemployment
Demand for Labour < Supply for Labour
Lack of geographical + occupational mobility means people will be unemployed and need to be retrained
What does it mean to be Inactive of Working Use
Seeking Employment but unable to start work or Not seeking employment
What is Frictional Unemployment
People who are in the process of changing jobs
What is Seasonal Unemployment
Unemployment at certain times of the year
What does it mean to be Economically Active
Factors in the Employed and Unemployed
People who are engaged in the labour market and people employers can look to recruit
What is the Employment Rate
Percentage of the population of working age who are employed
What is the Unemployment Rate
Percentage of the economically active who are unemployed
What is the Activity/Participation Rate
Percentage of population of working age who are economically active
What is the Inactivity Rate
Percentage of the population of working age who are inactive
Types of Unemployment
Friction Unemployment
Seasonal Unemployment
Structural Unemployment
Cyclical Unemployment
Real Wage Unemployment
What is Real Wage Unemployment
When real wage rates are stuck at a level above that needed to reduce unemployment any further
