Unemployment

Question 1

Unemployed

Answer 1

Individuals of working age who are able, available and willing to work but cannot find it despite an active search

• Economically active but not in employment

Question 2

Employed

Answer 2

Anyone over the age of 16 who has completed 1 hour of work

Question 3

Unemployment rate

Answer 3

Number of unemployed / labour force

• Proportion of economically inactive people who are unemployed

Question 4

Economically inactive

Answer 4

Those not in work and aren’t looking for work despite being of working age

Question 5

Labour force

Answer 5

The economically active

Employed + Unemployed

Question 6

Full employment

Answer 6

All those who are economically active and willing and able to work at going wage rates are able ti find employment

• Absence of demand deficient employment

Question 7

Discouraged workers

Answer 7

People who have been unable to find work despite looking - no longer looking

Question 8

Underemployment

Answer 8

When an individual is employed in a second choice occupation / under utilised in terms of skills / is not working as much as they would like to

Question 9

Claimant count

Answer 9

Number of eligible to claim JSA / month (looking for work)

• Cheaper and new figures each month
• Excludes unemployed but are not eligible (partners have high incomes or savings)
• Some unemployed don’t register or claim
• Some can’t prove that they are looking for work

Question 10

Labour force survey

Answer 10

International Labour Organisation. 16+, want a job, have looked in last 4 weeks or have found a job and will start in the next 2 weeks

• All EU members use it = easy comparison
• Data collected annually with quarterly sampling
• Costly
• Not the most accurate

Question 11

Problems of both the Claimant Count and LFS

Answer 11

Don’t include hidden unemployed, underemployed or discouraged workers

Question 12

Seasonal unemployment

Answer 12

Regular changes in labour demand throughout the seasons causing unemployment

Question 13

Frictional unemployment

Answer 13

Unemployment associated with job search

Question 14

Structural unemployment

Answer 14

Unemployment arising from changes in the pattern of economic activity were there is a mismatch between labour skills and new job requirements

Question 15

Real wage unemployment

Answer 15

Happens when wages are forced above equilibrium, causing labour supply to extend and labour demand to contract

Question 16

Unemployment causes

Answer 16

Globalisation, competition in domestic market, technology, geographical and occupational immobility