UNEMPLOYMENT Flashcards
WHAT IS UNEMPLOYMENT?
THOSE WHO R WILLING AND ABLE TO WORK AT THE GOING WAGE RATE BUT DON’T HAVE A JOB.
WHAT R THE 2 WAYS OF MEASURING UNEMPLOYMENT?
- CLAIMANT COUNT
- LFS/ILO UNEMPLOYMENT
WHY IS THERE A DIFFERENCE BETWEEN LFS AND THE CLAIMANT COUNT?
- SOME PEOPLE WHO WANT TO WORK R INELIGIBLE FOR BENEFITS DUE TO HIGH SAVINGS OR A PARTNER WITH HIGH INCOME
- SOME PEOPLE DON’T REGISTER FOR BENEFITS DUE TO STIGMA OF RELYING ON THE STATE FOR HANDOUTS
- LFS SURVEY COUNTS 16-17 YR OLDS BUT CLAIMANT COUNT STARTS AT 18
R THERE ANY GROUPS NOT INCLUDED WITHIN EITHER OF THESE STATISTICS?
- THOSE WHO R ECONOMICALLY INACTIVE E.G DISABLED/CHILDREN/RETIRED
- THOSE WHO R VOLUNTARILY UNEMPLOYED
- WORKERS NOT INCLUDED IN OFFICIAL STATS E..G ILLEGAL IMIGRANTS, HOMELESS, BLACK MARKET WORKERS ETC
WHAT DOES IT MEAN TO BE VOLUNTARILY UNEMPLOYED?
THOSE WHO R NOT WILLING TO WORK AT THE GOING WAGE RATE.
WHY DOES THE UK LABOUR MARKET TYPICALLY HAVE THOUSANDS OF JOB VACANCIES BUT ALSO UNEMPLOYMENT?
SKILLS MISMATCH
WHAT IS UNDEREMPLOYMENT?
WHEN PEOPLE R WILLING TO WORK MORE.
WHY IS THE GOVT PARTICULARLY CONCERNED ABOUT YOUTH AND LONG TERM UNEMPLOYMENT?
- MAY BECOME DISCOURAGED WORKERS AND NEVER FIND WORK BECOMING A LONG TERM COST
- IF UNI AND SCHOOL GRADUATES CAN’T FIND WORK, THE MONEY SPENT TRAINING THEM WAS WASTED AND THEIR SKILLS WILL DEPRECIATE
WHY HAVE WAGES IN THE UK STAYED LOW EVEN THOUGH UNEMPLOYMENT IS FALLING?
WORKERS ACCEPT LOWER REAL WAGES TO AVOID UNEMPLOYMENT.
WHAT IS THE GOVT TARGET FOR UNEMPLOYMENT?
FULL EMPLOYMENT
WHAT CAN FULL EMPLOYMENT BE DEFINED AS?
- EVERY1 HAS A JOB
- LABOUR MARKET IN EQUILIBIUM
- NUMBER OF VACANCIES MATCH THE NUMBER OF PEOPLE WITHOUT A JOB
WHAT IS REAL WAGE UNEMPLOYMENT?
WHEN WAGES R DELIBERATELY MAINTAINED ABOVE EQUILIBRIUM LEVEL CAUSING AN EXCESS SUPPLY OF LABOUR.
WHAT R EXAMPLES OF REAL WAGE UNEMPLOYMENT?
- INCREASES IN MIN WAGE
- TRADE UNION POWER
WHAT IS CYCLICAL UNEMPLOYMENT?
WHEN A DOWNTURN IN THE ECONOMIC CYCLE LOWERS AD REDUCING DERIVED DEMAND FOR WORKERS.
WHAT IS STRUCTURAL UNEMPLOYMENT?
OCCURS WHEN THERE’S A CHANGE IN THE STRUCTURE OF THE ECONOMY
WHAT IS AN EXAMPLE OF STRUCTURAL UNEMPLOYMENT?
UK USED TO DO A LOT OF MANUFACTURING BUT IS NOW FOCUSED ON SERVICES SO PEOPLE WHO USED TO WORK IN FACTORIES HAVE NOW LOST THEIR JOBS - CAUSES OCCUPATIONAL IMMOBILITY
WHAT IS SEASONAL UNEMPLOYMENT?
WHEN WORKERS R ONLY REQUIRED ON A SEASONAL BASIS.
WHAT R EXAMPLES OF SEASONAL UNEMPLOYMENT?
- ICE CREAM VAN WORKERS
- WORKERS IN TOURIST INDUSTRY
- CONSTRUCTION WORKERS
WHAT IS FRICTIONAL UNEMPLOYMENT?
TRANSITIONAL UNEMPLOYMENT DUE TO PEOPLE MOVING BETWEEN JOBS.
HOW DOES IMMIGRATION AFFECT THE UK ECONOMY?
- INCREASE LRAS AS THERE IS A GREATER QUANTITY OF LABOUR
- INCEASE AD THROUGH WAGE SPENDING LEADING TO A POSITIVE MULTIPLIER EFFECT AND JOB CREATION
WHAT R THE ADVANTAGES OF IMMIGRATION?
- CAN MEET AREAS WHERE THERE R SHORTAGES E.G TEACHERS/NURSES
- HELP SOLVE THE PROBLEM OF AN AGIING POPULATION
- LEADS TO LOWER COSTS FOR FIRMS KEEPING INFLATION LOW
WHAT R THE DISADVANTAGES OF IMMIGRATION?
INCREASES COMPETITION LOWERING WAGES
WHAT R THE COSTS OF UNEMPLOYMENT FOR FIRMS?
- LOWER DEMAND
- NEGATIVE MULTIPLIER EFFECT
WHAT R THE COSTS OF UNEMPLOYMENT TO CONSUMERS?
- CONFIDENCE LOSS
- LESS DISPOSABLE INCOME
