UNEMPLOYMENT Textbook Key Terms

Question 1

ACTIVE POPULATION

Answer 1

Those in work/actively seeking work (also known as labour force)

Question 2

ACTIVITY RATE/PARTICIPATION RATE

Answer 2

Number of those in work/unemployed divided by population of working age expressed as %

Question 3

CYCLICAL/DEMAND-DEFICIENT UNEMPLOYMENT

Answer 3

When there is insufficient demand in economy for all workers who wish to work at current wage rates to obtain job

Question 4

EMPLOYED
EMPLOYMENT

Answer 4

• Number of people in paid work
• those in paid work

Question 5

EMPLOYMENT RATE

Answer 5

Number of those in work divided by population of working age expressed as %

Question 6

FRICTIONAL UNEMPLOYMENT

Answer 6

When workers unemployed for short lengths of time between jobs

Question 7

FULL-TIME WORKERS

Answer 7

Workers who work hours + days which are norm for a particular job

Question 8

HIDDEN UNEMPLOYED

Answer 8

Partly those in population who would take job if offered, but not in work + not currently seeking work, + partly those who are underemployed

Question 9

INACTIVE

Answer 9

Number of those not in work + not unemployed

Question 10

INACTIVITY RATE

Answer 10

Number of those not in work + not unemployed divided by population of working age expressed as %

Question 11

LABOUR FORCE

Answer 11

Those in work/actively seeking work; also known as active population

Question 12

LONG-TERM UNEMPLOYED

Answer 12

those unemployed for over 1 year

Question 13

PART-TIME WORKERS

Answer 13

Workers who only work fraction of hours + days which are norm for a particular job

Question 14

WORKING AGE POPULATION

Answer 14

Total number of people aged between statutory school leaving age + state retirement age

Question 15

REAL WAGE/CLASSICAL UNEMPLOYMENT

Answer 15

When workers unemployed as real wages too high + inflexible downwards, leading to insufficient demand for workers from employers

Question 16

SEASONAL UNEMPLOYMENT

Answer 16

When workers unemployed at certain times of year, e.g building workers/agricultural workers in winter

Question 17

SELF-EMPLOYED

Answer 17

Workers who work on their own account + are not employees

Question 18

SHORT-TERM UNEMPLOYED

Answer 18

Those unemployed for under 1 year

Question 19

STRUCTURAL UNEMPLOYMENT

Answer 19

When pattern of demand + production changes leaving workers unemployed in labour markets where demand has shrunk
E.g regional unemployment, sectoral unemployment, technological unemployment

Question 20

UNDEREMPLOYED

Answer 20

Those who would work more hours if available / are in jobs which are below their skill level

Question 21

UNEMPLOYED
UNEMPLOYMENT

Answer 21

• Those not in work but seeking work
• occurs when individuals are without job but actively seeking work

Question 22

UNEMPLOYMENT RATE

Answer 22

Number of those not in work, but seeking work, divided by labour force expressed as %