Unemployment

Question 1

Unemployment

Answer 1

Number of individuals of working age who are without a job, even through they are willing to work at current wage rates

Question 2

Labour force

Answer 2

Total number of workers = Employed + Unemployed

Question 3

Unemployment rate

Answer 3

= Unemployed/Labour force

Question 4

Labour force participation rate

Answer 4

=Labour force/Adult population

Question 5

Claimant unemployment rate

Answer 5

The number of people claiming unemployment benefits
Doesn’t include whose those household savings or income are too high
Can be changed by the government to make unemployment look better

Question 6

Standardised unemployment rate

Answer 6

Internationally used
Have been out of work for 4 weeks and willing to start in 2 weeks

Question 7

Disequilibrium unemployment

Answer 7

Real wage inflexibility
Growth in the labour supply
Demand/Keynesian/Cyclical

Question 8

Equilibrium unemployment

Answer 8

Structural
Seasonal
Frictional