Unemployment
- Created by: studybee
- Created on: 02-02-14 13:12
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- Unemployment
- Key Concepts
- Full Employment
- Where all eligible people who are looking for work are able to get a job at the current wage level
- Not simply 100% of the population employed
- Where all eligible people who are looking for work are able to get a job at the current wage level
- Unemployment
- The amount of people who are able, available and willing to work at the going wage rate but cannot find a job despite an active search for work
- Economically Inactive
- People who are not actively looking for work
- Full time carers
- Need to look after elderly relatives
- Early Retired
- People who are not actively looking for work
- Under Employed
- People who want full time work but have to settle for part time work
- Unemployment Trap
- Disincentives to work
- Job Vacancies
- The number of unfilled jobs available in the economy
- Full Employment
- Consequences
- Individuals and Families
- Less disposable income so consumption will fall
- Tax Payers
- Could experience tax cuts as a result of changes in fiscal policy
- Economic Costs
- Labour is used inefficiently
- Individuals and Families
- Measurement
- Claimant Count
- Measures the amount of people who are eligible to claim Jobseeker's allowance. The data is seasonally adjusted to take into account predictable seasonal changes in demand for labour
- Labour Force Survey
- Counts those who are without any kind of job including part time work but who have looked for work in the past month and are able to start immediately
- Claimant Count
- UK Unemployment
- A downturn in output caused by a contraction in employment
- Government Policy Responses
- Fiscal
- Increase government spending on welfare state, reduce taxes to create more incentives to work
- Monetary
- Reduce interest rates to encourage firms to invest and grow
- Supply-Side
- increase number of policies such as education in order to re-skill workforce
- Fiscal
- Causes
- Demand Side
- Demand Deficit
- Involuntary unemployment caused by a lack of demand for goods and services.
- When there is a recession, we see rising unemployment because of plant closures and business failures. Firms are likely to downsize labour costs to maintain profits.
- Involuntary unemployment caused by a lack of demand for goods and services.
- Seasonal
- When the demand for labour rises and falls depending on the season.
- Holiday Reps in summer
- Christmas temps
- Fruit Pickers
- When the demand for labour rises and falls depending on the season.
- Demand Deficit
- Supply Side
- Frictional
- Where people mover between jobs. It may take time for a country's labour market to match the available jobs with people seeking work
- Structural
- When the demand for labour in an industry suffers a long term decline
- Mining industry
- When the demand for labour in an industry suffers a long term decline
- Frictional
- Demand Side
- Key Concepts
- Untitled
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