Employment and unemployment Flashcards
What is employment?
Employment is when a person has a job and earns income by working
What is unemployment?
Unemployment is when a person doesn’t have a job, wants to work and is actively looking for a job but cannot find one.
What are the three different types of unemployment?
Frictional, structural and cyclical.
What is frictional unemployment?
When people are temporarily not working because their transitioning between jobs or entering the workforce for the first time.
What is structural unemployment?
This occurs when people lose their jobs because their skills don’t match what employers need anymore.
What is cyclical unemployment?
This is unemployment due to changes in the economy. When the economy is doing badly and businesses aren’t making enough money so they have to lay off staff to save money.
What is underemployment?
When people work in jobs that don’t fully use their skills or work fewer hours than they want.
What is out of the work/labour force?
People who are not working and not actively looking for work, such as retirees, students, or stay-at-home parents. They are not counted as unemployed.
