Employment and Unemployment Flashcards
What is meant by ‘unemployment’?
occurs when someone is willing and able to work but does not have a paid job
What is the Claimant Count?
A measure of unemployment, in which the number of people claiming Job Seeker’s Allowance (JSA) is counted for benefits
Why may claimant count not be accurate?
not everybody claims unemployment benefits so there will be people who are unemployed but aren’t on benefits
What is meant by ‘underemployment’?
when a person does not work full time or takes a job that does not reflect their actual training and financial needs
Why did underemployment become more relevant post-Financial Crisis?
With lower demand for goods and services, firms start laying off workers and at the same time refrain from raising prices
What is meant by ‘employment’?
a paid mutual work arrangement between a recruiter and an employee
What is meant by ‘economically inactive’?
those who are neither employed nor unemployed; they’re not in paid work, but they’re also not looking for a job or available to start work
What is the difference between the population of a country and its labour force?
The labour force participation rate is the number of persons in the labour force as a percentage of the working-age population
Why do we find that Employment and Unemployment sometimes rise at the same time?
some people who had been out of the labor force—and, therefore, not counted by the BLS as being unemployed—begin to search for work during the month but don’t find jobs
How does unemployment affect the individual and his/her family?
Unemployed individuals often feel a sense of shame or embarrassment about their situation which often leads to isolation from friends and family
How does unemployment affect consumers?
disposable or discretionary income decreases. This reduction affects the ability of consumers to purchase non-essential items
How does unemployment affect firms?
reduced investments as firms aren’t confident about the firm’s future prospects
How does unemployment affect those remaining in work?
employees work harder but earn less
How does unemployment affect government?
decreases the government’s fiscal capacity to fund public services and investments
How does unemployment affect society?
lower GDP growth, higher consumer prices and less purchasing power
