Unemployment Flashcards

1
Q

Unemplyment

A

People who are available and actively looking for employment but can not find a job

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2
Q

Why measure unemplyment

A

Key indicator if economic performance
Major social problem
Governement need to know scale of problem to fix it

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3
Q

2 Ways to measure unemployment

A

Claimant count

The Labour force survey

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4
Q

The claimant count

A

Published each month showing amount of people claiming job seekers allowance

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5
Q

The labour force survey

A

Unemployed people actively seeking work for past 4 weeks, ready to start work in 2 weeks, people starting work 2 weeks

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6
Q

Frictional umenployment

A
When workers leave one job and spend some time looking for a new one
Reasons:
Better wage
Dislike their job
Made redundant
Sacked
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7
Q

Seasonal unemplyment

A

Consumers demand for some goods and services are seasonal
E.g more workers will be employed during the summer seasons as tourism increases so when winter season comes employees will be sacked

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8
Q

Cyclical unemployment

A

Happens when there is too little demand for goods and services in the economy during a recession
E.g firms may cut production and workers cause of no profit

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9
Q

Structural unemployment

A

Arises for long term changes in the structure of the economy as an entire industries close down because of lack of demand of goods and services they produce or production moves to countries overseas

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10
Q

Regional unemployment

A

If most of the firms are located in a pericular area then there may be a structural change as employees may be fired as cheaper labour is found in developing countries

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11
Q

Technological unemplyment

A

Industrial robots and computerised machinery has been substituted for labour

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12
Q

Problems with the claimant count

A

People who are over the state pension age are not eligible
People not looking for full time work are not eligible
People working in the black market are not eligible

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13
Q

Problems with the labour force survey

A

Measures only fraction of country
Students and people on sick leave are classed as unemployed
Difficult to tell if someone is seeking work or are unemployed

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14
Q

Effects of unemployment on iduviduals

A

Reducinging income while still have major spending commitments
Reduces living standards
Reduces efficiency as worker loses skills, fitness and motivation

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15
Q

Social effects of unemplyment

A

Reduced status lead to social exclussio
Increased health problems
Less confidence
Family breakdown

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16
Q

Effects of unemplyment on buisnesses

A

Fall in demand for products’ fall in sales and. Profit
Buisnesses go out of business
Bigger rage of labour
Less pressure to pay higher wages

17
Q

Economic Costs of unemplyment

A

Lost output
Reduced spending in the economy effecting other jobs
Reduced taxation revenue for government

18
Q

Social costs of unemplyment

A

Increased crime rate
Civil unrest
Increased burden on health system
Local shops shut down

19
Q

Government costs of unemplyment

A

Other priorities suffer/schools
Tax receipts fall as incomes fall
Government becomes unpopular

20
Q

Infaltion

A

Rise in the general level of prises

21
Q

Reatail price index

A

The headline rate of inflation

22
Q

Consumer price index

A

RPI without housing costs or council tax costs

23
Q

CPIH

A

This includes housing costs

24
Q

Deflation

A

Sustained fall in the average price level in the economy

25
Q

Disinflation

A

Fall in the rate of inflation

26
Q

Stagflation

A

Persistent high inflation combines with low economic growth