Theme 2- Employment & Unemployment (key terms) Flashcards
Claimant Count
The number of people claiming benefits for unemployment - the Jobseeker’s Allowance or JSA in the Uk
Labour Force Survey (ILO)
- An interview-based survey of about 60,000 households
- Includes all people over 16 and is a better measure than the claimant count
Underemployment
Where someone doesn’t have as much work as they would ideally like or working in a job that doesn’t use your skill level
Economic inactivity
People who are working age but are NOT currently seeking work for a variety of reasons (childcare, retirement etc) - not part of the workforce
Structural unemployment
Unemployment caused by the changing structure of the economy - e.g. when a country like Britain loses jobs in manufacturing
Cyclical unemployment
- Unemployment caused by the economic cycle
- When you have a negative output gap, AD is falling, there is spare capacity, so there is not enough demand to create enough jobs
Seasonal unemployment
Unemployment at different points in the year - e.g. unemployment rises in a tourist destination during winter months
Frictional unemployment
Unemployment caused by people moving between one job and another - isn’t necessarily a problem as people need to move jobs - a sign of a healthy labour market
Demand deficient unemployment
Also known as cyclical unemployment, occurs when planned demand is insufficient to generate a full-employment level of real national output, this is most likely to happen in a slowdown or recession
Disguised unemployment
Also known as hidden unemployment - part of the labour force is either left without work or is working in a redundant manner where worker productivity is essentially zero
Discouraged workers
People who have been unable to find work for a very long time so have stopped looking - they become economically inactive, so they may not show up on unemployment measures
Economically active
Those who are unemployed and actively seeking employment
Economically inactive
Those who are of working age but are neither in work nor actively seeking work.
Full employment
When there enough job vacancies for all the unemployed to take work
Natural rate of unemployment
The equilibrium rate of unemployment = frictional + structural unemployment
Migration
The movement of people from one geographical location to another with the intention of settling in the new region
Tight labour market
When demand for labour is high and there are shortages of labour. Businesses may have to offer higher wages to attract and keep the workers they need
Unemployment trap
When the prospect of the loss of unemployment benefits dissuades those without work from taking a new job –creates a disincentives problem
NEETs
‘NEET’ stands for young people aged 16-24 Not in Education, Employment or Training (NEET). 788,000 people aged 16-24 in the UK were NEETs in 2019, representing 11.3% of the age group
