Unemployment

Question 1

Define “unemployment”.

Answer 1

Unemployment is the number of people who are willing & able to work, but is unable to find a job.

Question 2

Define “workforce”.

Answer 2

Workforce is the total number of people who are employed and those who are unemployed (and seeking work).

Question 3

What percentage of unemployment is considered full employment (the natural rate of unemployment)?

Answer 3

95% is considered full employment.

Question 4

What is “youth unemployment”? How high is it? How can it be reduced?

Answer 4

• Youth unemployment are people aged 15-24 who are willing and able to work but can’t find a job.
• The youth unemployment rate is usually two times the general unemployment rate.
• Can be reduced by skill training/education, work experience programs, and giving advice.

Question 5

What factors can cause youth unemployment?

Answer 5

• Less work experience
• Seen as unreliable
• Fewer skills/qualifications
• Most likely to work in a casual job (more likely to let go)
• Need more training, which costs time and equipment

Question 6

Which types are the hardest to reduce?

Answer 6

• Frictional
• Structural-Technological
• Hardcore