LS9 - Employment

Question 1

Frictional unemployment

Answer 1

Short term unemployment caused by workers leaving one job for another

Question 2

Seasonal unemployment

Answer 2

Some workers tend to work on a seasonal basis - unemployment levels fluctuate between seasons - ex: workers in the tourism industry will mostly only be working in certain seasons

Question 3

Structural unemployment

Answer 3

Occurs when the demand for labour is less than its supply in a certain labour market
Regional unemployment - difference in factors of production between regions lead to differences in employment
Sectoral unemployment - if the market for labour in a particular sector declines, workers in that sector will lose their jobs, leading to unemployment, and this is made worse if those workers dont have any other valuable skills that could be used in a different sector
Technological unemployment - some employees could be replaced by technlogy, increasing unemployment

Question 4

Cyclical unemployment

Answer 4

Unemployment that occurs when there is a recession - insufficient AD in the economy for everyone to have a job

Question 5

Real wage unemployment

Answer 5

Some unemployed people might be willing to work for less than minimum wage, but firms arent allowed to pay workers less than min wage, so they will remian unemployed
Others wont look for a job, as they could receive more from unemployment benefits than from an actual job,