Unemployment Flashcards
What is unemployment?
Someone who is willingly and actively seeking for a job but is unable to find one.
What is under-employment
Someone who is willing and able to work full time but can only find part time employment.
How is unemployment measured?
Labour force survey , Claimant count.
What is the claimant count?
Number of people eligible for unemployment benefits.
What is frictional unemployment?
Workers between jobs
What is structural unemployment?
Workers lack necessary skills
What is seasonal unemployment?
When people are unemployed at particular
times of the year when demand for labour is lower
than usual
What happens if unemployment increases? (Downward cycle)
Leads to a reduction in consumer spending then to a decease in firm sales and then firms would have to shut down or cut costs.
What happens if unemployment decreases? (Upwards cycle)
Leads to an increase in consumer spending then to an increase in firm sales and then firms are able to take on more staff.
