Unemployment Flashcards
Name 3 categories of people that are not deemed unemployed
Student
Stay at home carers
Stay at at home parent
Sarah does not have a job and is currently not searching for one, is she deemed unemployed? Why?
No she is not unemployed she is inactive
Distinguish the difference between employed unemployed and inactive
Employed - have a Job
Unemployed - actively searching for a on
Inactive - not actively looking for a job
Who are the two categories of participants of the labour market ?
Employed and unemployed people
Define participation rate
Measures the amount of people at working age that are actively participating in the labour market
Describe in a few words the participation rate in Ireland by gender
15 point difference, between men and women
How is unemployment computed
U = u
————-
E+U
Wha is the correlation between participation and the economy
Economy is bad participation goes down and so does unemployment
Describe the graphic input of unemployment and inflation
Inflation and unemployment go in opposite directions
Describe the Phillip curve
- Economy is close to full employment the prices go up
- Lots of unemployment - prices stay flat or decrease
- V high unemployment. - people work less and labour and goods = cheaper
What are 2 exceptions to the Phillips curve
- post financial crisis - low inflation and low unemployment
Give a brief description of the correlation between gdp and unemployment
- labour and capital are not fully utilised
- as production goes down so does income
- economic downturns = unemployment
Define structural unemployment
- when a workers skill are no longer in demand
cyclical unemployment
Jobs that are lost due to economic downturns/ fluctuations in the economy
Frictional unemployment
People waiting on the right job
