Unemployment

Question 1

Define unemployment

Answer 1

people of working age who are without work, available for work and actively seeking work.

Question 2

Define employment

Answer 2

An agreement between employee and employer that employee will provide certain services

Question 3

What is the aim for unemployment

Answer 3

3%

Question 4

Define full employment

Answer 4

When unemployment meets the aim 3%

Question 5

What does LFS stand for

Answer 5

Labour Force Survey

Question 6

What does the LFS do

Answer 6

A measure of unemployment which surveys people to class them as unemployed, employed of inactive under the international labour organisation

Question 7

What is the claimant count

Answer 7

The measure of the number of people out of work and claiming benefits

Question 8

Name the 5 types of natural unemployment

Answer 8

Cyclical,Voluntary,Structural,Frictional,Seasonal

Question 9

how many types of Natural unemployment are there?

Answer 9

5

Question 10

Define structural unemployment

Answer 10

when there is a permanent decline in the demand for a particular type of labour e.g coal mining

Question 11

Define frictional unemployment

Answer 11

Short turn unemployment when people are between jobs

Question 12

Define voluntary unemployment

Answer 12

People that are unwilling to work at current wage rates

Question 13

Define seasonal unemployment

Answer 13

Jobs that only exist over particular time periods e.g Farming, Santa clause impersonators, seasonal part time workers

Question 14

what is a Benefit of unemployment for individuals

Answer 14

have time to reflect re-train & re-skill

Question 15

What is the benefit of unemployment for the economy(4)

Answer 15

Can improve quality of production-larger pool to choose from
more capacity
larger pool of labour
lower wage rates
lower cost push inflation

Question 16

What is demand deficient unemployment

Answer 16

when a lack of demand in the economy leads to firms having to make redundancies and lay off staff

Question 17

What are some causes of unemployment
(5)

Answer 17

Frictional unemployment
Positive output Gap
Negative output gap
Seasonal changes
Retail or firm closures /lack of demand

Question 18

What are the consequences of unemployment for consumers (3)

Answer 18

less disposable income
fall in standard of living
Bad mental health after loosing job

Question 19

What are the consequences of unemployment for Firms (4)

Answer 19

Larger labour pool
Fall in wages
Fall in profits
Rise in inferior goods

Question 20

What are the consequences of unemployment for Workers (1)

Answer 20

Loss of existing skills if not utilised

Question 21

What are the consequences of unemployment for Government (2)

Answer 21

spend more on job seekers allowance(OC)
less revenue from tax

Question 22

What are the consequences of unemployment for Society (2)

Answer 22

Workers could produce goods if employed(OC)
Negative externalities could occur e.g crime & vandalism.

Question 23

Give two effect of full employment on an economy

Answer 23

Reduced crime and improved standard of living

Question 24

What can the LFS do that the Claimant count cannot do

Answer 24

The LFS gives a higher figure of unemployment as ppl who are part time employed will not claim unemployment benefits.

Question 25

What can worsen/ cause structural unemployment

Answer 25

globalisation, geographical and occupational immobilisation of labour (can easily move elsewhere)