Unemployment Flashcards
What are the types of unemployment?
cyclical, structural ,frictional unemployment and seasonal
What is cyclical unemployment?
Results directly from cycles of economic upturn and downturn
What is frictional unemployment?
the unemployment which exists in any economy due to people being in the process of moving from one job to another.
What is structural unemployment?
unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.
What is seasonal unemployment?
occurs when people are unemployed at particular times of the year when demand for labour is lower than usual.
What is real wage inflexibility?
Fixing wages above the equilibrium rate (minimum wage) can result in the supply of labour being more than the demand for labour
What are the measures of unemployment?
Claimant account, International Labour organisation (ILO), UK labour force survey
What is under-employment?
Under-employment refers to a situation where an individual is working, but their job does not fully utilize their skills or abilities
What is the definition of unemployment?
when an individual who is not employed and is seeking employment, cannot find work
Difference between unemployment and underemployment?
Unemployment refers to individuals who are not currently employed but are actively seeking and available for work. Under-employment occurs when individuals are employed but their job does not fully utilize their skills and qualifications
What is meant by being economically inactive?
People not in employment who have not been seeking work within the last 4 weeks and/or are unable to start work within the next 2 weeks
What would cause unemployment levels to increase?
Economic downturns , low economic growth , technological changes , seasonal work, mismatch of work
What would cause an increase in employment levels?
Supply-side policies/ government intervention, increased entrepreneurship, depreciation of the pound=> increased demand for national exports. Increased AD
Difference between ILO and claimant account?
The Claimant Count tracks unemployment benefit claimants, while the ILO measure includes all unemployed people actively seeking work, regardless of benefit status.
What affects savings?
Interest rates/ Income levels/ Consumer confidence/ Inflation/ Fiscal policies
