Unemployment Flashcards
Unemployment definition
When someone is able to work and actively seeking work but not currently working
Working-age population definition
Everyone between 16-64 years old
Active population
Physically and mentally able to work
Inactive population
Not physically and mentally able to work
Activity rate (i.e participation rate)
What % of the working-age population is actively seeking work/actively working
Name 2 measures of unemployment
- Claimant count
- ILO labour force survey
Underemployment
When workers are employed but working fewer hours than they want to/ underusing their skills
Real-wage unemployment
When wage is above equilibrium wage
Frictional unemployment
When people are temporarily unemployed while searching for a new job
Seasonal unemployment
Seasonal workers without jobs due to the time of year where there are seasonal changes in employment
Cyclical unemployment
When there’s not enough demand in the economy
Structural unemployment
When the economy’s structure changes, shifting jobs from one sector to another
Occupational immobility
When workers can’t move between different jobs because they lack the skills needed to
Geographical immobility
When workers struggle to move between different areas
