Unemployment Flashcards
Where’s unemployment rate
4.2%
Ho is the unemployment rate formulated
Through a labor force survey
Who conducts the labor force survey
Office for national statistics
Why cant the survey be trusted
Normally there is 100,000 that participate in the survey, however this survey only had 15,000 people participate in it showing that the figure may be inaccurate and potentially higher
Whats the wage rate
5.6%
Why is wage rate increasing?
Due to more people inactive (20–22.1%), as labour is a derived demand and there not being a lot due to inactiivty. thus lso people in work have high wage bargaining power, also due to inflation as well
Why is wage growth a positive
1) Wage growth is greater than inflation (5.6%>3.2%)
Higher purchasing power for consumers
Why is wage growth a negative
1) Higher inflatio demand for goods and services
2) Employer/Business’ costs increase and thus may pass on these costs to underlying consumers.
Youth Unemployment (16-24 years old)
11%
Consumer Confidence
Low