Unemployment

Question 1

Define Unemployment

Answer 1

those that are actively seeking but cannot find a job

Question 2

Measuring Unemployment

Answer 2

ILO (International Labour Organisation) measure

Question 3

Cyclical

Answer 3

according to economic cycle
demand drops = employment levels drop

Question 4

Structural

Answer 4

sectorial
declining industry
technological
replaced by machinery
regional
unemployment is different in different regions

Question 5

Seasonal

Answer 5

jobs only required certain times of the year

Question 6

Voluntary

Answer 6

people who choose to not work

Question 7

Frictional

Answer 7

The crossover period when a person is switching jobs

Question 8

Impacts of Unemployment Output

Answer 8

lower output
less growth
lower living standards

Question 9

Impacts of Unemployment Scarce Resources

Answer 9

unemployed people do not contribute
less resources used fully

Question 10

Impacts of Unemployment Poverty

Answer 10

increase in poverty
people lose jobs
may not be able to support themselves

Question 11

Impacts of Unemployment Government Spending

Answer 11

unemployed people have financial benefits

Question 12

Tax Revenue

Answer 12

tax revenue falls cause fewer people can pay salary tax

Question 13

Consumer Confidence

Answer 13

confidence falls as fewer people can afford to buy luxury goods. employed people may worry about their job security

Question 14

Business Confidence

Answer 14

Laying off workers means paying redundancy money. Firms are less likely to take risks