Macro 2.3 Employment Flashcards
Employment rate
Proportion of the working age population in work
Unemployment rate
Proportion of the working age population seeking work (economically active) but who do not have a job
Voluntary unemployment
when an individual chooses not accept a job at the going wage rate
Involuntary unemployment
When an individual would lke to accept a jobt at the going wage rate but is unable to find employment
Labour market participation rate
Proportion of working age people who are economically active (inemployment or actively seeking employment)
Economically inactive
Working age people who are neither in employment nor unemployed and so are not part of the labour force
Full employment
when all those who are economically active and are willing and able to work (at the going wage rate) have a job
Frictional unemployment
Unemployment associated with job search, i.e. those who are between jobs
Occupational immobility
Barriers to workers changing occupations
Geographical immobility
Barriers to the movement of workers between different regions
Labour Force Survey
Measure of the percentage of the workforce who are without jobs but are available for work, looking for work and willing to work
Claimant Count
Measure tof the numerb of people registered as unemployed and claiming jobseeker’s Allowance
Cyclical unemployment
Unemployment thjat arises throughout the course of the economic cycle, during a downturn or recession
Demand-deficient unemployment
Unemployment that arises because of a deficiency in aggregate demand in the economy, i.e. the equilibrium level of output is below full employment
Seasonal unemployment
unemployment that arises during certain seasons in the year
