Topic 4 - Labour Markets Flashcards
What is the ‘Unemployment Rate (%) formula?
No. of persons unemployed
—————————————- x (100/1)
Total labour force
What are the 8 different types of Unemployment?
Cyclical, Structural, Long-term, Seasonal, Frictional, Hard-Core, Hidden, and Underemployment.
Why does Cyclical unemployment occur?
How is it reduced?
Cyclical unemployment is caused by a downturn in the demand for the business’s goods and services.
Can be reduced when there is an upturn in the business cycle, such as aggregate demand rising for the goods and services.
What causes Structural unemployment?
Explain the main factor of structural unemployment increasing. (Hint: Industries/technology)
Structural unemployment occurs from the mismatch of skills demanded by employers and those possessed by unemployed people or machines/technology at cheaper rates.
Who classifies into Long-Term unemployment and how did they end up in this position?
An individual must be unemployed for a period of 12 months or more.
Commonly seen from long-term effects of cyclical or structural unemployment.
List the 4 ways in which Government Intervention can occur.
Note: First 3 are related to the workplace
1) Establish minimum wage levels
2) Resolve industrial disputes
3) Set minimum conditions for working conditions.
4) Removing unnecessary regulations and restrictions.
What does an increase in demand for labour, in relation to G&S, and output of the firm lead to?
(3 factors)
The demand for labour is reliant on the demand for goods and services.
1) Output of the firm ↑
2) Productivity of labour ↑
3) Costs of other inputs ↑
What does a decrease in demand for labour lead to?
5 factors
The supply of labour is reliant on individuals who are ready and willing to work.
1) Pay and remuneration ↓
2) Working conditions ↓
3) Mobility of occupation ↓
4) Participation rate ↓
5) Human capital of skills/experience/education ↑
List the 7 employment trends/examples evident in the Australian Labour Market.
(Und___, Un___, etc.)
1) Unemployment 2) Underemployment
3) Part-time work 4) Casualisation of work
5) Outsourcing 6) Contractors
7) Sub-contracting
State:
1) What a Trade Union is and its role for w___s.
2) Impact on the supply of labour (Shift L/R)
1) An association of workers that presents employee’s interests to the government. AIms for increased wage outcomes, better work conditions and issues.
2) Shifts supply of labour left, increasing wage rates but decreasing quantity of labour.
State:
1) What an Employer Association is and its role for employers.
2) Impact on the labour market (Shift L/R)
1) Collective group of employers which represent their interests to the government and solving industrial issues.
2) Shifts supply of labour right, increasing wage rates and quantity of labour.
Distinguish between a formal and informal employment contract.
Formal: Fixed agreement of wage conditions already set by the government.
Informal: Personal agreement made between employee and employer with specific requirements.
Explain what a Modern Award is.
Is it formal or informal?
A legal, safety net of minimum wages and working conditions for employees already set by the FWC.
It is a formal agreement.
Explain what an Enterprise Agreement is. Is it formal or informal?
Which test must it pass?
A FORMAL agreement is negotiated collectively through enterprise agreements with a group of employees and an employer.
Must pass the BOOT (Best off Overall test).
Explain what a Common law Contract is.
Is it formal or informal?
An informal contract made personally between an employer and employee. Generally offers ‘add-ons’ from previous awards set.
