employment and unemployment Flashcards
why do people work?
to make money, learn new skills, make friends, contribute to society
what is unemployment?
a situation where people who are willing and able to work are unable to find unemployment
when is a person classified as employed
if they work more than one hour per week and receive an income/profit
non labour force
all those people who are over the age of 15 but are not either working or seeking work eg retired, disabled, volunteer, those who chose not to work
what collects labour force statistics
the australian bereau of statistics (ABS) conduct labour forces surveys monthly. involves 0.5 percent of population selected from around the country
what is the unemployment rate
the percentage of people who are in the labour force and actively seeking work but do not have a job
how to calculate the unemployment rate
number of people unemployed/number of people in the labour force times 100/1
limitations of the unemployment rate
- ignores hidden unemployment
- ignores underemployment
- misleading survey answers
4 types of unemployment
cyclical, structural, seasonal and frictional
cyclical unemployment
- occurs when the level of spending int the economy falls
- this leads to reduced spending, reduced production, snd hence a reduced need for labour
if the pessinism persists the economy can move into a period of negative growth ( 2 consequtive quaters of this = recession)
structural unemployment
- occurs as a result of changes in the way goods and services are produced
- causes increased productivity, often due to changes in tech
- leads to a mistmatch of skills and jobs avaliable
seasonal unemployment
- results from the termination of jobs at the same time each year due to the regular changes in seasons eg ski worker, fruit picker
frictional unemployment
- when people are unemployed between finishing one job and starting another
long term unemployment
people who have been unemployed for 52 consectutive weeks (1 year) or longer
youth unemployment age
15-24 years old
