Unemployment

Question 1

Unemployed

Answer 1

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

Question 2

Employment (N)

Answer 2

Is the number of people who have a job

Question 3

Unemployment (U)

Answer 3

Is the number of people who do not have a job but are looking for one

Question 4

Labour force (L)

Answer 4

The economically active population aged between 15-74, includes those who are employed and those who are unemployed. Labour force= Employed + Unemployed

Question 5

Unemployment rate (u)

Answer 5

Is the ratio of the number of people who are unemployed to the number of people in the labour force

Question 6

Inactive population (not in labour force)

Answer 6

All other persons. The labour force compromises persons employed plus unemployed, not inactive population

Question 7

Frictional unemployment

Answer 7

Arises when workers who are “between jobs” find themselves unemployed for a short period of time although work is available

Question 8

Structural unemployment

Answer 8

Is caused by the changing structures of industry in a country/region (may create a pocket of unemployment in one area e.g coal mining)

Question 9

Cyclical unemployment

Answer 9

This type of unemployment exists due to inadequate effective aggregate demand. It gets its name because it varies with the business cycle. It occurs when the unemployment rate moves in the opposite direction as the GDP growth rate

Question 10

Seasonal unemployment

Answer 10

Results from changes in the demand for certain products e.g tourism