unemployment Flashcards
how is someone counted as unemployed?
someone m just be of working age, willing and able to work and actively seeking work but cannot find a job
what are the two main measures of unemployment
-claimant count
-labour force survey
what is meant by economically active
people are those in work plus those seeking and available to work
what is meant by economically inactive
people are those who have stopped and active search for paid work in the labour market
what are some examples of economically inactive individuals
e.g students, stay at home parents, discouraged workers, long term sick, early retirement
when does under-employment occur
1)looking for additional job or actively seeking new job with longer hours to replace current job
2)they want to work longer hours at current job at their basic rate of pay
what are the main types of unemployment
-seasonal
-structural
-frictional
-cyclical
what is seasonal unemployment
when there is increased unemployment for certain industries in certain seasons, e.g in winter there is unemployment in theme parks
what is structural unemployment
arises from a mismatch of skills and job opportunities as the pattern of labour demand changes, linked to industry e.g when mines shut down people found it difficult to find new work as that was all they knew
what is meant by labour immobility
workers that are unable to move into a different occupation
what is frictional unemployment
-short term
-also known as ‘search unemployment’
-also when seeking 1st ever job
-people moving between jobs
what is cyclical unemployment
caused by a fall in or persistent weakness of AD,leading to a decline in real GDP and increased unemployment
what are economic costs of high unemployment
-lost output, economy working inside of PPF
-drop in tax revenues, e.g income tax and NICs
-fiscal deficit
what are the social costs of high unemployment
-increase in relative poverty and welfare benefit dependancy
-extra demand on NHS(stress related illness)
-issues such as crime and addiction
