Measures Of Economic Performance - Employment And Unemployment Flashcards
What are the two key measures of unemployment in the UK
The claimant count
The International Labour Organisation
What is the claimant count
The number of people claiming Jobseeker’s Allowance (the unemployment benefit) in a particular time
What is the problem with the claimant count as a way to measure employment
Not everyone eligible for JSA claims it
What is the ILO
A large-scale quarterly survey of households. In the UK, the British Labour Survey records unemployment levels among the households survey
Causes / types of unemployment
- Structural unemployment
- Frictional unemployment
- Seasonal unemployment
- Demand deficiency and cyclical unemployment
What is structural unmeployment
Type of unemployment characterised by a gap between the supply of labour and the demand for labour
Possible reasons for structural unemployment
Workers not having the necessary skills
Dramatic changes in certain sectors
Geographical barriers
What is frictional unemployment
This refers to the period of looking for work in between ending one job and starting a new one - (Much less of a concern than structural unemployment)
What is seasonal unemployment
Some industries only operate at certain times in the year. Due to the nature of this type of work, workers may find themselves unemployed on a seasonal basis
What is demand deficiency and cyclical unemployment
Almost all economies experience business cycles - during economic downturns, demand for labour is low, and some workers may become unemployed as a result of this deficiency in demand
Immigration is expected to __________ the supply of labour in an economy. Ceteris paribus, this would _________ the unemployment rate
Increase
Increase
The effect of migration on employment and unemployment depends on the capacity of the host economy to absorb them and the relative ________ of immigrants and the native population
Skills
Who does unemployment effect
Costs to the unemployed themselves
Costs to the government
Costs to the economy and society as a whole
How does unemployment effect the unemployed
They usually receive minimal financial support
Decrease in their well-being
Loss of self-confidence
Hysterisis - long-term unemployment - lead to workers losing skills and becoming less employable
How does unemployment effect the government
A government that provides financial support to the unemployed will face a heavier cost if unemployment increases. This diminishes their ability to spend in other important areas
