unemployment Flashcards
how many parts to definition
4
define unemployment
those of working age
who are willing and able to work
activey seeking work
but dont have a job
what are the 2 main ways to meausre unemployment
labour force survey
claimant count
which is the big daddy of measuin gunemployment
laobur force survety
what is the labour force survey
survey conducted by te ONS about employment
how many people and households does the laour force survey ask
40k hh
100,000 people
from unemployment data collecte in the LFS what 3 things can we workout
those employed
those unemployed
those economically inactive
what is economically active
those of wokring age but not willing to work
how do you work out unemployment
unemployed /
economically active
x 100
what is the economically active
those employed + unepmloyed (According to our definniton
what does claimant account measue
total number of people claiming unemployment beenfits
whats the 4 things wrong wiht the claimant count
difficult to compare between coutnriees
not everyone will claim
not everyone can claim
subject to fraud
why is it subject to fraud
casue its a money hand out
why is it difficult to compare between countries
some dont offer unemp benefits
condiitons to get unemployment benefits vary
why is claimant count always lower than labour force survey
cause not everyone will and can claim
why wont everyone claim unemployment benfits
may not need them / embarrased
why can everyoen not claim unemp benefits
its a handout by the gov therfore strict conditions
#e.g may be excluded due to having large savings/assests, partners income
what are the 6 issue with the labour force survey
sampling errors
hidden unemployed discouraged workrers
inactive grops
underemployment
disparities
explain sampling errors of lbour force survey
100k tiny sampel compared to workinf age pop of arun 40 million
so trying to extrapolat eoet whole econ will result in sampling errors
margin of error of unep 3%+- wide
who are discouraged orkers
try to get work but rejected constantly
these knocks beocme hard to tolerate so people give up and drop out of labour force as not willing and seeking eotk anymore
why is hidden unep of discouraged worekrs a problem of labour force survey
not ociunted as unemployed but should be
e.g uni graduates 20 young and hihg working productive potential
who are inactive groups
those of wokring age but not willilng to work
we dont mind some of these groups such as full time studnets but soe shoud be e.g careers /early retired
inactive grous such as the early retired have got a high
productive potential
those who are imactive are basically
unemployed resources but not coutned as not willing to work
those under employed are counted as
fully employed
in the Uk whats the condiiton to be employed full time
1 hour a week
whats the problem witht eh under empolyed int erms of isseus of lfs
those who want ft work but are on part tmime are only partially employed e.g ZHC
so incorrect
explain problem of disparitites
dont tell you about diff in unemp e.g age, gender race
meaning one gov cant effectivley target reducing unemp as dont know speciif grous - so not macing potential out of specific policies
why are disparities important
tell us about potentially underlying structural issues in the econ - can do gov such as legislaiton
what is voluntary unemployment
when wage given doesnt give enough incentive to work so you choose not to do it
what is involuntary unemploymen
when workers are willing to work at the current wage rate but cant find jobs
