Unemployment

Question 1

Definition of Unemployment

Answer 1

Occurs when a person is willing and able to work but cant find a job and is actively seeking one.

Question 2

Measures of Unemployment

Answer 2

• The Labour Force Survey (LFS-ILO)

* Claimant Count

Question 3

Definition of Underemployment

Answer 3

Someone who is working fewer hours than they would like.

Question 4

Types of Unemployment

Answer 4

• Frictional Unemployment
• Structural Unemployment
• Cyclical Unemployment
• Demand Deficient (Cyclical) Unemployment

Question 5

Definition of Frictional Unemployment

Answer 5

This is unemployment caused by people moving in between jobs

Question 6

Definition of Structural Unemployment

Answer 6

This occurs due to a mismatch of skills in the labour market.

Question 7

Definition of Classical Unemployment

Answer 7

This occurs when wages in a competitive labour market are pushed above the equilibrium.

Question 8

Definition of Demand Deficient Unemployment

Answer 8

This occurs when the economy is operating below full capacity.

Question 9

How is the Claimant Count measured

Answer 9

This counts the number of people receiving benefits, receiving the job seekers allowance

Question 10

How is the LFS measured

Answer 10

This is a survey asking 60,000 people whether they are unemployed and whether they are looking for a job.

Question 11

Policies to reduce unemployment

Answer 11

• Lower benefits and taxes
• Fiscal and Monetary Policy
• Better job information
• Education and Training
• Regional grants