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Flashcards in Y1 - Employment and unemployment Deck (12)
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1
Q

Define workforce

A

A measure of people of working age who are willing and able to work

2
Q

Define unemployed

A

Someone who is willing and able to work but is not currently in employment

3
Q

What are the measures of unemployment?

A

1 - claimant count = Measuring unemployment using number of people claiming JSA
- Not everyone who is eligible claims it, governments prefer (shows smaller %), and some people may be denied therefore not included
2 - Labour force survey = Measure of unemployment of those out of work in the last 4 weeks and ready to start in the next 2 weeks
- More representative, but data is 6 weeks old, ILO (international labour organisation)

4
Q

Define underemployment

A

A situation in which a worker is employed but wants to work more (zero hour contracts)

5
Q

Factors affecting employment

A
  • Compulsory age to be in education/training = more skilled and employable in long run
  • Number of studens going to uni likely to fall as fees rise
  • Level of net migration = will change size of workforce
  • Availability of jobs = state of economy
  • Level of taxes/benefits
6
Q

Define real wage unemployment

A

People who are willable and able to work but not at the given wage rate

7
Q

Define demand-deficient unemployment

A

Unemployment caused by a lack of AD in the economy (such as in a recession) = cyclical unemployment

8
Q

Reasons for demand-deficient unemployment

A
  • Lack of business confidence
  • Increase in value of currency (import more and export less SPICED)
  • Slow rates of productivity growth relative to other countries (less FDI)
  • External shocks such as rise in oil prices
  • Increase use of imports from low-wage economies
9
Q

Define structural unemployment

A

A measure of workers who lose jobs in a declining industry and do not have the skills to join other industries

10
Q

Define frictional unemployment

A

A measure of people who are between jobs

11
Q

Define seasonal unemployment

A

A measure of people who only have jobs at certain times of the year

12
Q

What are the effects of unemployment?

A
  • Consumers = lower incomes and lower SoL
  • Firms = must lower prices so profits lower
  • Workers = skills ‘out of date’ in long run
  • Government = JSA increase and decrease tax revenues