Unemployment

Question 1

What is unemployment?

Answer 1

A situation where are by individuals who are willing and able to work are unable to find a suitable employment opportunity

Question 2

What is the unemployment rate?

Answer 2

The number of unemployed persons divided by the labour supply multiplied by 100 to turn into a percentage

Question 3

Give the unemployment rate formula

Answer 3

Number of unemployed
Unemployment rate= ——————————- x 100
Labour supply

Question 4

What are some variations in unemployment rates?

Answer 4

-Different age groups
-gender differences
-Other special groups

Question 5

What are the types of unemployment?

Answer 5

1. Seasonal unemployment - when there is a low demand at certain times of the year.
2. Frictional unemployment - when people are in the process of switching jobs or joining working
3. Structural unemployment - caused due to a mismatch between skills offered and skills demanded.
4. Cyclic unemployment - when an economy moves from a business activity slows down.
5. Real wage unemployment - when the real wage is Set above the equilibrium wage in the labour market

Question 6

Name a few costs of unemployment on an economy

Answer 6

1. Loss of national output
2. Lower GDP
3. Inefficient use of resources.

Question 7

What are the government’s policies to deal with seasonal unemployment?

Answer 7

1. Training and skill development.
2. Job sharing.

Question 8

What are the government policies that deal with frictional unemployment

Answer 8

1. Skills and training development.
2. Job assistance from jobs plus
3. Providing up-to-date job vacancies

Question 9

What are government policies that structural unemployment

Answer 9

1. Education and training programs.
2. Promotion of lifelong learning.

Question 10

Name some government policies that deal with cyclical unemployment

Answer 10

1. Monetary policy.
2. Fiscal policy.