Unemployment Flashcards
What is unemployment?
The proportion of working age who don’t have a job, but are looking for one
What are the requirements for unemployment?
Able to work
Available to work
Willing to work
Of working age
What are economically active people?
Those in work or/and people seeking and available to work
What are economically inactive people?
People who have stopped an active search for paid work in the labour market
What has led to more economically inactive people in the UK?
The covid pandemic led to increased number of people leaving the workforce
What are ways of measuring unemployment?
Claimant Count
Labour Force Survey
What is the claimant count?
It measures the number of people who are eligible to claim JSA ( Job Seekers Allowance - A form of Benefits)
Excludes people that fail to meet conditions ; like over 60s or in the government training scheme.
Less accurate
What is Labour force survey?
Measures the number of people who have looked for work in the past month and are available to start within the next 2 weeks.
Used for international comparison
What method is used for comparison/ more accurate?
Labour Force Survey
Why should unemployed people receive benefits?
Workforce development
Economic stability
Social safety net
Why should unemployed people not receive benefits?
Disincentive to work
Cost to government
Dependency on payments
What are the types of unemployment?
Disequilibrium
Seasonal
Cyclical
Frictional
Classical
Voluntary
Involuntary
Structural
What is seasonal un?
unemployment that occurs when people are temporarily out of work due to the seasonal nature of certain industries or jobs
What is disequilibrium un?
Labour supply and demand for labour are not equal
What is cyclical un?
Economic downturn leads to less jobs
