Macro 9 - Unemployment Flashcards

1
Q

What is unemployment

A

exists when people who are able and willing to work are without jobs

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2
Q

Who are not classed as unemployed?

A

people not in the labour force

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3
Q

Who are people who are economically inactive?

A

Individuals not in the labour force but of working age

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4
Q

What are the reasons for unemployment being a key macroeconomic objective?

A
  • Government can secure more tax
  • Crime rate may increase if unemployment is too high
  • Brain drain / immigration out of country decreases
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5
Q

Why is full employment not the same as zero unemployment?

A

Some people will always be unemployed and not willing to work (welfare)

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6
Q

How do you calculate unemployment?

A

(unemployed people / Labour force) / 100

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7
Q

What are the 2 measures of unemployment?

A

The ILO Measure

The Claimant count

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8
Q

What is the ILO measure of unemployment?

A

People who are out of work and who want to work and have looked for a job in the last 4 weeks

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9
Q

Who would not be counted in the ILO measure of unemployment?

A

Long term unemployed people

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10
Q

What is the claimant count measure?

A

Number of people in labour force who are on unemployment benefits

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11
Q
A
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