Unemployment Flashcards
What is the Working Age Population
People between the ages of 16 and 64.
What is the active population
People between the ages of 16 and 64 who are actively working or actively seeking work. Also called the workforce.
What is the inactive population
People between the ages of 16 and 64 who are neither actively working nor actively seeking work. This includes those who are unable to work.
What is unemployment
When somebody is able to work and actively seeking work but is not working.
what is the unemployment level
The number of people who are unemployed.
What is the unemployment rate
The number of unemployed people as a percentage of the economically active population.
What is the Unemployment Rate Formula
Unemployment rate = (Number of unemployed people/economically active population) x 100
What is the Employment Level
The number of people who are employed.
What is the Employment Rate
The number of employed people as a percentage of the working age population.
What is the Employment Rate Formula
Employment rate = (Number of employed people/working age population) x 100
What is the Activity Rate
The activity rate (or participation rate) is the number of economically active people as a percentage of the working age population.
What is the Activity Rate Formula
Activity Rate = (Number of Economically Active People/Working Age Population) x 100
What is the Labour Force Survey
A survey to measure Unemployment conducted by the International Labour Organisation
What is the claimant count
A measure of Unemployment which calculates the number of people claiming unemployment benefits
What is underemployment
Underemployment is when workers are employed but working fewer hours than they want to or underusing their skills
What is Occupational Immobility of Labour
When workers can’t move between different jobs because they lack the skills
What is geographical Immobility of Labour
When workers can’t move between different jobs because they can’t move to a different location
What is Real Wage Unemployment
Real wage (or classical) unemployment occurs when wages are above the equilibrium wage creating an excess supply of labour.
What is Cyclical Unemployment
Cyclical (or demand deficient) unemployment occurs when there is low aggregate demand in an economy and so firms reduce their derived demand for labour.
What is Structural Unemployment
Structural unemployment occurs when the structure of the economy changes, shifting jobs from one sector or location to another and leaving immobile workers unemployed.
What is Frictional Unemployment
Frictional unemployment occurs when people are temporarily unemployed while searching for a new job.
What is Seasonal Unemployment
Seasonal unemployment occurs when people are unemployed during certain seasons.
