UNEMPLOYMENT Flashcards
What is an economic indicator?
providing insights into economic health (e.g., unemployment rate, GDP).
Name the three types of economic indicators.
Leading, Coincident, and Lagging indicators.
What are leading indicators?
Indicators that change before economic activity changes (e.g., home building approvals).
What are coincident indicators?
Indicators that change in line with economic activity (e.g., GDP, retail sales).
What are lagging indicators?
Indicators that change after economic activity changes (e.g., unemployment rate).
What is a procyclical indicator?
An indicator that rises when the economy grows.
What is a countercyclical indicator?
An indicator that decreases when the economy grows, e.g., unemployment.
Define unemployment.
When people willing and able to work cannot find paid work.
What is the formula for the unemployment rate?
(Unemployed / Labour Force) x 100
How is the participation rate calculated?
(Labour Force / Working Age Population) x 100
Define participation rate.
The percentage of the working-age population in the labor force.
How is the underutilisation rate calculated?
Unemployment rate % + Underemployment rate %
What is underemployment?
Employed individuals wanting more hours than they have.
What is seasonal unemployment?
Unemployment due to decreased labor demand at certain times of the year.
What is frictional unemployment?
Short-term unemployment during job transitions (e.g., people changing jobs).
