Employment And Unemployment

Question 1

Unemployment

Answer 1

The state of being unemployed/out of work

Question 2

Employment

Answer 2

The state of having paid work

Question 3

Underemployment

Answer 3

Workers who are in a job which is lower skilled than what they’re capable of

Question 4

Wage inflexibility

Answer 4

Wages that don’t respond to a change in price and demand changes

Question 5

Migration

Answer 5

Movement of people from one place to another with the intention of settling

Question 6

Real wages

Answer 6

Wages that adjust for inflation

Question 7

Economic activity

Answer 7

The activity of making, providing, purchasing or selling goods and services

Question 8

Cyclical unemployment

Answer 8

Occurs because of changes or fluctuations in the country’s economy over time

Question 9

Structural unemployment

Answer 9

When a worker’s organisation or industry reorganises but the workers have no other skills for a different skilled job

Question 10

Frictional unemployment

Answer 10

The process of moving from one job to another

Question 11

Seasonal unemployment

Answer 11

People unemployed during certain times of the year because demand for their type of work is low E.g beach lifeguards

Question 12

Economic inactivity

Answer 12

The section of the working age population who are not in employment and aren’t seeking employment

Question 13

Claimant count

Answer 13

A measure of the number of people claiming unemployment benefits (JSA)

Question 14

Labour force survey

Answer 14

A survey which counts those who are unemployed but have looked for work in the past month

Question 15

Two advantages of using the LFS to measure unemployment

Answer 15

1) More reliable than the CC as it includes all types of unemployment
2) LFS is good for international comparisons and previous figures

Question 16

Two disadvantages of using the LFS to measure unemployment

Answer 16

1) not representative of the whole country

2) it’s difficult to determine whether someone is unemployed or not leading to inaccurate results

Question 17

Two advantages of the CC to measure unemployment

Answer 17

1) precise and accurate figure of unemployment

2) quick and easy to collect

Question 18

Two disadvantages of the CC to measure unemployment

Answer 18

1) incomparable between counties due to exchange rates being different
2) Gov frequently change the criteria who is eligible for the JSA, making figures hard to compare

Question 19

Three types of unemployment

Answer 19

Frictional
Seasonal
Structural

Question 20

Two causes of real wage inflexibility

Answer 20

1) Companies prioritising shareholder interest over employee wages
2) poor productivity

Question 21

One cause of underemployment

Answer 21

Employees having to work in a new industry that gives them a lower skilled job