Unemployment

Question 1

Define the claimant count

Answer 1

A measure of unemployment:

Counts number of people claiming unemployment related benefits such as job seekers allowance (JSA) and they have to prove they are actively looking for work

Question 2

Cons of claimant count

Answer 2

• Not everyone unemployed person is eligible for or claims JSA
• Those with partners on high income are not eligible even if unemployed
• Some employed people claim JSA leading to underestimation of true level of unemployment

Question 3

Name some reasons why UK unemployment increased

Answer 3

• falling incomes mean less consumption so less demand for labour
• uncertainty of economic growth in country - discourages firms from expanding and investing
• closure of high street banks

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