Full employment or low level of unemployment Flashcards

1
Q

What is full employment?

A

the level of employment where those who are economically active can find work if they are willing to accept jobs at the going wage rate.

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2
Q

What does it mean to be economically active?

A

Either in work or seeking work- working population who contribute to the economy

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3
Q

What is unemployment?

A

Those people who are able, available and willing to work but cannot find a job despite an active search for work.

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4
Q

Examples of people who are NOT considered unemployed (economically inactive)

A
  • students in full-time education
  • pensioners
  • discouraged workers
  • sick/disabled people
  • housewives/husbands
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5
Q

Problems of unemployment:

A
  • scare human resources are not being used to produce goods and services to meet peoples needs and wants
  • waste to an economy
  • increased crime, alcoholism, vandalism
  • lower personal incomes and lower standards of living
  • poor physical and mental health
  • fewer skills acquired
  • loss of tax revenue
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6
Q

Issues of claimant count- method of measuring unemployment

A
  • not all unemployed will claim
  • some deterred bc cannot prove they are looking for work
  • part-time workers
  • may fraudulently claim
    - underestimates actual unemployment levels
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7
Q

Issues of labour force survey measure- unemployment

A
  • subject to sampling errors

- may not be representative

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8
Q

Difficulties with measuring unemployment

A

under-employment: may be working fewer hours than they want

inactivity rates/ leaving job market: long-term unemployed may have been discouraged

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