topic 3 - employment and unemployment

Question 1

What is the labour force?

Answer 1

Employed + unemployed over 15 years

Question 2

What is the non labour force?

Answer 2

People who are not actively looking to find work.
- retired
- full time students
- volunteers

Question 3

Where and how is the unemployment rate measured?

Answer 3

Australian Bureau of statistics and using labour force surveys

Question 4

What is unemployment?

Answer 4

Unemployment is a situation where people are willing and able to work and acitvely looking for it, just unable to find it.

Question 5

What is employment?

Answer 5

Work at least 1 hour a week, earning money. Enables us to earn an income so we can purchase the goods and services we want.

Question 6

How is the unemployment rate calculated?

Answer 6

number of people employed/number of people in the labour force
x
100/1

Question 7

What are some limitations of the unemployment rate?

Answer 7

• unemployment rate ignores hidden employment
• unemployment rate ignores underemployment
• misleading survey answers
• statistical problems

Question 8

What does unemployment rate ignores hidden employment mean?

Answer 8

• rejected multiple times
• discouraged job seekers

Question 9

What does unemployment rate ignores underemployment mean?

Answer 9

• those working below capacity
  eg. part-time but want full-time

Question 10

What does misleading survey answers mean?

Answer 10

• some people might provide misleading information in fear of losing benefits when responding to survey’s

Question 11

What does statistical problems mean?

Answer 11

• small sample size
• imputed data

Question 12

What is the estimated unemployment rate?

Answer 12

4.1%

Question 13

What are 4 causes of unemployment?

Answer 13

1. cyclical unemployment
2. structural unemployment
3. seasonal unemployment
4. frictional unemployment

Question 14

What is cyclical unemployment?

Answer 14

• level of spending in the economy falls
• leading to reduced spending, reduced production, reduced need for labour

Question 15

What is structual unemployment?

Answer 15

• changes in the ways goods and services are produced
• often due to changes in technology

Question 16

What is seasonal unemployment?

Answer 16

• termination of jobs at the same time each year due to the regular change in seasons

Question 17

What is frictional unemployment?

Answer 17

• unemployed between finishing one job and starting another

Question 18

What is long-term unemployment?

Answer 18

Those unemployed for 52 consecutive weeks or longer (more than a year)

Question 19

Who is youth unemployment rates for?

Answer 19

Those aged 15-24

Question 20

What is the current rate of youth unemployment?

Answer 20

Around 8% (approx 8.2%)

Question 21

What are living standards?

Answer 21

Refer to how well off or prosperous individuals and the nation are overall. Includes both material and non-material wellbeing

Question 22

What is material wellbeing?

Answer 22

Refers to the enjoyment received from access to goods and services

Question 23

What is non-material wellbeing?

Answer 23

Refers to the quality of life which is not related to the size of income and quantity of goods and services consumed

Question 24

What are some of the effects of unemployment on individuals and families?

Answer 24

• reduced incomes
• family unhappiness
• lower self image
• less healthy
• less superannuation at retirement

Question 25

What are some of the effects of unemployment on business and society?

Answer 25

• ripple effect on businesses
• increased crime and vandalism
• lower material living standards with fewer goods and services being produced
• increase incidence of family breakdown

Question 26

What are some of the effects of unemployment on the government?

Answer 26

• lowers number of income earners
• less government revenue collected from income tax
• pay more unemployment benefits