Unemployment Flashcards
Define unemployment
people of working age who are without work, available for work and actively seeking work.
Define employment
An agreement between employee and employer that employee will provide certain services
What is the aim for unemployment
3%
Define full employment
When unemployment meets the aim 3%
What does LFS stand for
Labour Force Survey
What does the LFS do
A measure of unemployment which surveys people to class them as unemployed, employed of inactive under the international labour organisation
What is the claimant count
The measure of the number of people out of work and claiming benefits
Name the 5 types of natural unemployment
Cyclical,Voluntary,Structural,Frictional,Seasonal
how many types of Natural unemployment are there?
5
Define structural unemployment
when there is a permanent decline in the demand for a particular type of labour e.g coal mining
Define frictional unemployment
Short turn unemployment when people are between jobs
Define voluntary unemployment
People that are unwilling to work at current wage rates
Define seasonal unemployment
Jobs that only exist over particular time periods e.g Farming, Santa clause impersonators, seasonal part time workers
what is a Benefit of unemployment for individuals
have time to reflect re-train & re-skill
What is the benefit of unemployment for the economy(4)
Can improve quality of production-larger pool to choose from
more capacity
larger pool of labour
lower wage rates
lower cost push inflation
What is demand deficient unemployment
when a lack of demand in the economy leads to firms having to make redundancies and lay off staff
What are some causes of unemployment
(5)
Frictional unemployment
Positive output Gap
Negative output gap
Seasonal changes
Retail or firm closures /lack of demand
What are the consequences of unemployment for consumers (3)
less disposable income
fall in standard of living
Bad mental health after loosing job
What are the consequences of unemployment for Firms (4)
Larger labour pool
Fall in wages
Fall in profits
Rise in inferior goods
What are the consequences of unemployment for Workers (1)
Loss of existing skills if not utilised
What are the consequences of unemployment for Government (2)
spend more on job seekers allowance(OC)
less revenue from tax
What are the consequences of unemployment for Society (2)
Workers could produce goods if employed(OC)
Negative externalities could occur e.g crime & vandalism.
Give two effect of full employment on an economy
Reduced crime and improved standard of living
What can the LFS do that the Claimant count cannot do
The LFS gives a higher figure of unemployment as ppl who are part time employed will not claim unemployment benefits.
