Unemployment
- Created by: ollietinker
- Created on: 04-03-18 15:55
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- Unemployment
- Structural
- Decline of manufacturing
- Occupational immobility
- Geographical immobility
- Technological innovation
- Foreign competition - rising exports
- Long term regional decline
- Disincentives e.g poverty gap
- Outsourcing of production overseas
- Frictional
- Unaffordable housing
- Skills gaps - Cost of re-training
- Disincentives created by the poverty trap
- Risk of employer discrimination
- Erosion of skills and motivation from long term unemployment
- Disincentives created by the unemployment trap
- Technological
- Innovation of productivity enhancing technology
- Cheaper unit cost of labour by using technology rather than employing workers
- Cyclical
- 1. Demand - deficient unemployment
- 2. Fall in demand causes a fall in production
- 3. Fall in production leads to a fall in the demand for labour
- 4. Fall in the demand for labour causes unemployment
- Firms make redundancies
- Firms cut back on recruitment of new workers
- Structural
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