Unemployment Flashcards
What are the criteria
Without a job
Willing and able to work
Actively seeking work
How do you calculate the rate
Number unemployed over the labour force times 100
What is a benefit of using a rate
It can be used for international comparisons
What is the labour force survey
A survey of 60,000 people who are out of work, want a job, have been looking for work for 4 weeks, able for 2 weeks and the outcome is an average over 3 months
What are benefits of the labour force survey
It is used to base economic policies
It is used for international comparison
What are costs of using the labour force survey
Small sample
Bias- survey
Time consuming
What is the claimant count
Those seeking Jsa
What are benefits of using claimant count
Simple/ cheap due to lists being kept
Not an estimate
What are costs of using claimant count
Narrow- ineligible applicants
No comparisons
What are costs of unemployment
Lost output,
Worse government finance,
Personal costs,
Hysteresis
How would you evaluate unemployment in terms of duration
Long term- hysteresis
More short term (1.2m in 2001) than long term (0.4m)
How would you evaluate unemployment in terms of benefits
5bn a year op cost
Eu pay more- proportionately
How would you evaluate unemployment in terms of distribution
20.2% youth- consuming power
Lower than eu average- 24.4%
