• 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
      • 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
      • 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
    • 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
    • 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
    • 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
    • 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.
        • Seasonal
          • When the demand for labour rises and falls depending on the season.
            • Holiday Reps in summer
            • Christmas temps
            • Fruit Pickers
      • 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
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