Unemployment Flashcards
Long-term jobless
People who have been unemployed for at least one year
Capital-labour substitution
Replacing workers with machines to increase productivity and reduce the unit cost of production
Cyclical unemployment
Unemployment caused by a persistent lack of aggregate demand for goods and services
Discouraged workers
people out of work for a long time who may give up on job search and effectively leave the labour market
Frictional unemployment
Caused by workers seeking a better job; or who are in-between jobs, or new entrants to the labour market
Geographical immobility
Difficulty in moving regions / areas to get a job
Involuntary unemployment
A situation where a worker is willing to work at the going wage rate but cannot find a job
Labour force
All people who are of working age, and able and willing to work. It includes both the employed, and the unemployment
Occupational immobility
Difficulties in learning new shills applicable to a new industry, and technological change
Philips Curve
Shows a possible trade-off between inflation and unemployment
Real wage unemployment
Theory that wages above the market clearing equilibrium may cause unemployment
Structural unemployment
Unemployment resulting from the decline in an industry which leaves people unemployed because they do not have the skills needed by industries that are growing
Under-employment
When people want to work full time but find that they can only get part-time work
Unemployment rate
Proportion of the economically active population who are unemployed
Full-employment
When there enough job vacancies for all the unemployed to take work
