Unemployment Flashcards
definition of unemployment
the unemployed are people ABLE, AVAILABLE and WILLING to work and actively SEEKING work, but not employed
how do you measure of unemployment (6)
- claimant count
- ilo
- private costs to the unemployed and their dependents
- costs to taxpayer (increased benefits = loss of income tax)
- cost to economy (lost of output + negative multiplier
- costs to communities (increase in crime i.e drug use +joyriding)
what is the claimant count
the number of people claiming job seekers allowance
what does ilo stand for
international labour organisation
what is the ilo
the labour force survey, used to estimate how many people are unemployed currently in the UK
how does the ilo work
participants must have actively sought work in the previous 4 weeks and be available to start work
what are the 4 types of unemployment
- cyclical (demand-deficit) unemployment
- seasonal unemployment
- frictional (search unemployment
- structural unemployment
what cyclical (demand-deficit) unemployment
occurs when there is not enough demand to employ all those who want to work (depends on business cycle)
what is seasonal unemployment
particular jobs are only available at certain times of the year e.g. fruit picking
what is frictional unemployment
the gap between being out of work - as when people lose their jobs it takes them time to search for a new one
what is structural unemployment
occurs when the structure of the industry changes over time -not able to work in newly created industries
why are all these unemployment not serious
cyclical / demand-decifit: depends how long recession lasts - if short not serious
seasonal: can find other jobs during other times of year
frictional: normally doesn’t last long
structural unemployment: only affect small no of people
why could these unemployment serious
cyclical / demand-deficit, structural
cyclical / demand-decifit: most serious when recession, as means AD is very low and EVERYONE in the economy can affected
structural: leave people who don’t have any experience or any skills to apply for any other jobs
