Unemployment Flashcards
1
Q
Cyclical (Demand Deficient)
A
This occours when an economy is not in a boom phase.
It is because there arent enough jobs to provide to everyone.
There is a lack of aggregate demand
Factories and offices will often remain empty during this time period
2
Q
Structural
A
This occurs when the demand for labour is less than the supply.
Technological evolution is a leading factor in this as less jobs are required by certain companies as they have robots doing it
3
Q
Frictional
A
This is a type of short term unemployment where the person is moving from one job to another
It is not a serious problem
It will always happen as people look for new jobs
4
Q
what is is the average UK unemployment rate?
A
4.8%
