Unemployment Flashcards
Unemployment definition:
Those at the working age, willing and able to work, without a job (Note: working age is 16-65)
Labour force definition:
Part of the pop. that is at the working age, willing and able to work, with or without a job
Unemployment rate definition:
Percentage of the labour force that is without a job
causes of unemployment (3)
- frictional
- structural
- cyclicial
Frictional unemployment definition:
caused by temporary factors and lack of info between jobseekers and firms
structural unemployment definition:
caused by labour lacking skills that are in demand
cyclicial unemployment definition
caused by decrease in aggregate demand
frictional unemployment subareas (3)
Search unemployment –> students who just graduated, looking for a job
Casual unemployment –> those who quit/lost their jobs and are in search of a new job
Seasonal unemployment
structural unemployment subareas (3)
Industries and occupations that disappear –> other countries taking over the industry or become better at producing it
Regional unemployment –> high unemployment in rural areas
Technological unemployment –> employees redundant due to ICT (e.g. banking services offered through internet)
effects of unemployment on economy (3)
Lower tax revenue
Govt. expenditure on welfare payments increases
Higher crime rates –> law enforcement costs