T2: LS11 - Macroeconomic Objectives

Question 1

Define Unemployment

Answer 1

Unemployment: consist of those of a working age who are willing and able to work, actively seeking work but do not have a job.

Question 2

Economically inactive definition

Answer 2

Refers to those who are neither employed or unemployed and who are not available or looking for a job to start e.g. old people, students, those with illnesses.

Question 3

Define discouraged workers

Answer 3

Discouraged workers refer to those who have become economically inactive as they were unable to find a job and gave up after being unemployed for so long.

Question 4

What is the International labour organisation

Answer 4

Used Labour force survey data to create unemployment rates

Question 5

What is the LFS?

Answer 5

A large survey conducted by the ONS on 40,000 households to calculate the number of employed, unemployed and economically inactive.

Question 6

How do you calculate the unemployment rate?

Answer 6

Unemployment = unemployed *100 / economically active (employed + unemployed)

Question 7

What is the ILO definition of unemployment

Answer 7

• without a job, want a job and have looked in the last 4 weeks
• ready to start in 2 weeks
• out of work, have found a job, waiting to start in the next two werks

Question 8

What claimant count problems does the ILO solve

Answer 8

• maternity leave workers who are looking for a job cannot claim
• some who do not need benefits still claim
• hard to compare in countries with no benefit scheme
• not everyone will choose to claim