Topic 2: Unemployment Flashcards
What is the definition of unemployed?
Persons who, in the week before the survey, were without work and available for work within the next two weeks, and had taken specific steps, in the preceding four weeks, to find work.
What is the definition of employment, unemployment and labour force ?
Employment (N) is the number of people who have a job.
- Persons who worked in the week before the survey for at least one hour for
payment or profit, including work on the family farm or business and all persons
who had a job but were not at work because of illness, holidays etc. in the week.
- Unemployment: no of people who do not have a job but are looking for one.
- Labour force: economically active population aged 15- 74, includes employed and unemployed.
Formula: Labour Force = unemployed plus employed
Name and define the three main labour market indicators
- Unemployment rate: ratio of the no of people who are unemployed to the no of people in the labour force:
- Employment−population ratio: is the percentage of the working-age population who are employed.
- Labour force participation rate: is the no of people in labour force(percentage) of total population over 15yrs.
Three main labour market indicators formulas
- Unemployment rate: no of unemployed divided by the labour force x 100
- Employment−population ratio: no of people employed divided by working age population x 100
- Labour force participation rate: No in labour force divided by total population 15yrs+ x 100
What is the Dependency Ratio and its formula?
Dependency Ratio: no of dependents in population divided by no of working age people. working age= (15-64 yrs)
- no of children(0-15) + no of pensioners(65yrs+) divided by no of working age(15-64) x 100
What is full employment?
Full employment: occurs when the unemployment rate equals the natural unemployment rate.
-At full employment, all the unemployment is frictional or structural—and not cyclical unemployment
Name the four Types of unemployment
1) Frictional Unemployment
2) Structural Unemployment (involuntary)
3) Cyclical Unemployment (involuntary)
4) Seasonal Unemployment
What is Frictional Unemployment?
- Arises when workers are ‘between jobs’ find themselves unemployed for a short period of time but work is available.
-unemployment that comes from people moving
between jobs, careers, and locations. - not concerning
What is Structural Unemployment (involuntary)?
- Economies sometimes face fundamental or structural changes which lead to unemployment.
- Changes like Technological advancement(AI), changing industry structures and globalisation
What is Cyclical Unemployment (involuntary)?
Cyclical unemployment: the fluctuating unemployment over the business cycle, unemployment increases during recessions and decreases during expansions.
* It occurs when the unemployment rate moves in the opposite direction as the GDP growth rate - when GDP growth is small (or negative), unemployment is high
What is Seasonal Unemployment?
- Results from changes in the demand for certain products.
- E.g. Tourism: tourist guides etc. have less work during the
winter than in the summer.
Why are Economists concerned about unemployment?
- Because of its direct effects on the social welfare system and the Tax take – automatic stabilisers
- Increased unemployment benefits – Government expenditure ↑
- Increased unemployment – less income tax collected
- Increased unemployment – less indirect taxes collected
- Because it provides a signal that the economy may not be using some of its resources efficiently.
What is The Labour Force Survey (LFS)
It is a large-scale, nationwide survey of households in Ireland.
* It is designed to produce quarterly labour force estimates that include the official measure of employment and unemployment in the state.
What is the Live Register
counts as unemployed the people who are registered at local offices of the Department of Social, and Family Affairs
for either unemployment benefits (UB) or unemployment assistance (UA) ‘the dole’.
* It includes part-time workers (those who work up to three days a week), seasonal and casual workers entitled to Jobseeker’s Benefit (JB) or Jobseeker’s Allowance (JA).
What are the Costs of Unemployment?
Low self-esteem
* Long-term unemployed become discouraged & their skills become out of date (de-skilling – costs to government re skills programmes)
* Savings & social welfare payments only tie one over for a certain length of time – loss of earnings
* Loss of tax revenue – knock on effects on government expenditure
* Loss of production – effects on national income
* Regional deprivation
* Knock on effects on society – poverty, crime etc
Name 5 ways employment will change
- Fluid jobs (temp/flexible jobs/freelancers)
- Decentralized workforces (hybrid/remote working)
- Motivation to work
- Lifelong learning
- Technology will augment human’s jobs
Name some challenges to employment?
- Increased automation (Industry 4.0)
- Disruption due to environmental challenges e.g. fossil fuels
- Need to match skills and capabilities to the supply of jobs –
takes time. - Increased globalisation – movement of resources to lower
cost locations.
