Topic 2-Measuring Unemployment Flashcards
Is it easy to compare unemployment levels in different countries?
Some countries may not have the full knowledge of how many people are working
How can we find out how many unemployed people there are in the uk?
- go to a job centre and find out
- ILO (labour force survey)
- claimant count
Why do people become unemployed?
Can be made redundant or fired
Does immigration cause unemployment ?
Doesnt cause unemployment just influences it?
What does the ILO do? (International labour organisations)
The ONS carries out the labour force survey by randomly selecting 60,000 people and are asked about their employment status 4 times a year
What is the claimant count
Includes all those in receipt of unemployment related benefits principally job-seekers allowance
Benefits and problems of claimant count
- quick and easy to get results
- cheaper because statistics are already there
-not accurate as not everyone who is unemployed is on benefits
Benefits and problems of ILO
- accurate as many people are asked
- quick to do it(4 years)
- people doing the test receive money
-doesn’t reflect the whole population
Types of unemployment
- frictional
- seasonal
- cyclical
- structural
Frictional unemployment
- Unemployment In between jobs.
- the space between jobs
Cyclical unemployment
Reflective of what is happening in the economy of that time
During recession unemployment increases
During growth decreases
Seasonal unemployment
Unemployment which occurs different times of the year
E.g january unemployment (only needed during xmas)
Outdoor pools
Structural unemployment
-changes to the economy which causes unemployment because workers don’t have transferable skills
How to migrants effect unemployment/employment
- They don’t have the qualification to take new jobs
- More likely to get jobs because they accept low income
- natives in the UK don’t do some jobs
- uk people may lack qualifications and migrants may have them
- immigrants may have better education
What are the problems of unemployment?
- government spending more on benefits
- crime rate increases
- increase in social housing
- decrease in economic growth
- homeless
- gov may have to increase taxes
