Unemployment Flashcards
1
Q
Unemployment
A
When those actively seeking jobs are unable to find them
2
Q
How to measure unempoyment
A
- In the EU, a survey called the Labour Force Survey is carried out
- Claiment count
3
Q
Types of unempolyment
A
- Seasonal - unemployment caused when seasonal workers, such as those in the holiday industry, are laid off because the
season has ended - Frictional - when workers are unemployed for a short period of time as they move from one
job to another - Voluntary - unemployment resulting from people
choosing not to work - Structural:
sectorial unemployment - occurs when people are laid off because the industry they work in is in decline
technical unemployment - occurs when jobs that were previously done by people are now done by machines
regional unemployment - specifc to the region, rg. in the UK unempolyment is lower in the southeast than in the north
4
Q
Impact of unemployment on output
A
Reduces output as there are less people in the workforce
5
Q
Impact of unemployment on scarce resources
A
As the economy contracts, there is less efficfent use of resources
6
Q
Impact of unemployment on poverty
A
Increases as income falls
7
Q
Impact of unemployment on society
A
Inequalities rise as people stuggle to access healthcare
8
Q
Impact of unemployment on tax revenue
A
Decreases
9
Q
Impact of unemployment on consumer & business confidence
A
- Consumers have less job security, save more
- Businesses expect less revenue so they delay investment plans
10
Q
Impact of unemployment on gov spending
A
Recieve less tax revenue and have higher expenditure in the form of welfare benefits
