Employment and unemployment Flashcards
Unemployment meaning
members of the labour force who want to work, are
able to work, but are unable to find a job.
What is claimant court
No of people claiming unemployment related benefits from the government
What is the labour force survey
ILO uses a sample of the population.
Asks people who aren’t working if they’re actively seeking work.
Added up to produce ILO unemployment count
Disadvantages of claimant court (2)
Some people who claim JSA aren’t actively seeking
work
Not everyone who is eligible may sign-on
Advantages of claimant court (2)
Easy to obtain
Updated monthly so always current
Labour force survey advantages (2)
More accurate than claimant court
Internationally agreed measure of unemployment
Labour force survey disadvantages (3)
Expensive to collect
Less up to date
The sample may be unrepresentative to the population as a whole
Underemployment meaning
workers can not find a job that is
suitable for their qualifications and experience or who cannot find enough hours to work
What does unemployment mean for consumers (5)
Loss of income Decine in living standards The decline in spending power Rise of falling into debt problems The longer you are unemployed, the more “de-skilled” you become as workplace skills are not developed
Evaluation for unemployment (1)
unemployment might prompt some people to become self employed and start their own businesses.
What does unemployment mean for firms
a greater supply of labour – potentially lower wage
Lower consumer spending = lower demand for income-elastic products - firms lay off workers
Demand for inferior goods increase
What is structural unemployment
The UK shift towards the tertiary sector
Large pools of highly skilled workers may find
themselves unable to find work because production and supply has been moved to other countries
Need to be retrained
What is frictional unemployment
Unemployment as workers move in between jobs
Workers don’t have perfect or immediate info about every job opportunity
What is seasonal unemployment
Workers unemployed at different times of the year
What is cyclical unemployment
Towards a recession/negative output gap in the economy
Demand falls
Less production
Less employment
