Unemplyoment

Question 1

What is unemployment

Answer 1

Unemployment refers to people of the working age who are able to work and are actively seeking work but do not have a job

Question 2

What are the two measures of unemployment

Answer 2

• labour force survey
• claimant count

Question 3

What is the LFS

Answer 3

The labour force survey is a survey conducted by ons that gains data about the unemployed, employed and economically inactive

Question 4

How many people is the ones conducted on

Answer 4

40,000 households = 100,000 people

Question 5

How is unemployment rate calculated

Answer 5

Unemployed/ economically active x 100

Question 6

What is the claimant count

Answer 6

The claimant count is the measure of the amount of people on unemployment benefits

Question 7

What are some difficulties with the claimant count

Answer 7

• not all countries offer unemployment benefits so it makes it hard to compare
• not everyone claims maybe because they don’t need or embarrassed
• not everyone can claim -> different conditions necessary in each coutnry

Question 8

What are some problems with the lfs

Answer 8

• very small sample
• very costly which explains the small sample
• discouraged workers who always been rejected so stopped seeking are not counted
  -underemployed those o zero contract hours and part time work are counted as fully employed

Question 9

What is cyclical unemployment and hwo can it be solved

Answer 9

• cyclic,a unemployemnt is demand deficient unemployment
• when aggregate demand falls, and there is lower growth this causes cyclical unemployment as labour is derived demand and lower consumption
• increasing ad through monetary and fiscal policy

Question 10

What is frictional unemployment and hwo can it be solved

Answer 10

• frictional unemployment refers to unemployment which occurs in between jobs and trying to find to a new job
• frictional unemployment can be solved by providing information for workers looking to be employed such as job centres

Question 11

Structural unemployment and hwo can it be solved

Answer 11

• structural unemployment is caused chnages in the structure of an economy (decline in manufacturing sector)
• and due to labour immobility this causes structural unemployment to occur
• structural unemployment can be solved by decreasing labour immobility through relocation subsidies helping fix Hugh house prices, increasing in-work training quality

Question 12

Seasonal unemployment and hwo can it be solved

Answer 12

• seasonal unemployment is when there is a change in the seasonal demand
  + can be solved by encouraging industries to diversify so demand is consistent throughout the year
• can be solved by encouraging workers to retrain and get jobs who have consistent demand

Question 13

What kinds of unemployemnt can immobility lead to

Answer 13

• technological -> firm’s substitutes labour for capital and automation
• regional unemployment

Question 14

What is real wage unemployemnt

Answer 14

Wages are set above the labour market equilibrium