Unemployment 2.1.3 Flashcards
What is unemployment
when someone is able to work and is actively seeking work but is not working.
What is the active population
Aged between 16 and 64 - Physically and mentally able to work and seeking a job or already in one.
What is the inactive population
People between 16 - 64 who aren’t able to work or seeking work.
What is the unemployment rate
unemploymentlevel/ active population
What is the unemployment level
the number of people who are unemployed.
How do we calculate unemployment rate
Number of unemployed people \ Active Population x 100
How do we calculate participation rate
= Active population/working age population x 100
What 2 things change the employment rate
A change in number of employed people
A change in the working age population
What are the two ways of measuring unemployment
ILO labour force survey
Claimant count
What is the ILO labour force survey
80,000 households are interviewed and they check if someone has been out of work for 4 weeks and ready to start in 2 weeks. This is done every quarter
What is the limitation of the ILO labour force survey
80,000 may not be representative of the entire population
What is the claimant count
number of people claiming unemployment benefits.
What are the limitations of the claimant count
Not everyone who is unemployed claims benefits. Meaning it will underestimate the unemployment level.
Which method of measuring unemployment does the UK use
ILO labour force survey
What is underemployment
When someone is working fewer hours than they want or not fully utilizing their skills at their current job.
