Unemployment Flashcards
Unemployment
Who’s who are actively seeking work are unable to find one
how is unemployment measured
unemployment is measured using a survey.the survey the EU uses is called labour force survey that is usually done every month
Types of unemployment
Voluntary,frictional,cyclical,structural and seasonal
Seasonal
happens due to different times of the year
Voluntary
people who don’t want to work
Cyclical
happens during recession phase of the economic cycle
structural
changes in society that means certain jobs are no longer needed
frictional
people who move in between jobs
impact of unemployment on output
as unemployment increases output will decrease as there won’t be a lot of staff for production
impact of unemployment on poverty
as unemployment increases poverty will increase as people will have low income and won’t be able to afford basic needs
impact of unemployment on economic growth
as unemployment increases economic growth will decrease
impact of unemployment on tax revenue
as unemployment increases tax revenue will decrease as peoples income will decrease leading them to save money instead of spending it
impact of unemployment on use of resources
high unemployment won’t make good use of resources.Eg. on PPC , economy will be operating below
impact of unemployment on Government spending on benefits
will increase as unemployment increase ,this who are unemployed receive benefits to help them afford to live, but this is opportunity cost as more money would go to homeless people than to health benefits and education.
impact of unemployment on consumer confidence
as unemployment increase consumer confidence will decrease as they won’t have enough Monet to spend and they will save more.
impact of unemployment on business confidence
business confidence will decrease as unemployment increases, as when laying workers off, firms will have to pay reduncy money.fall in demand ,sales will fall, less likely to take risk
impact of unemployment on society
poverty and homelessness will increase.This can lead to an area becoming ‘run-down’ houses may not be maintained, gardens left to over grow and sometimes crimes may increase
Impact of unemployment
output, economic growth, tax revenue, use of resources, poverty, society,consumer confidence, business confidence, government spending on benefits
