AS Macroeconomics - all you need to know about Unemployment

Unemployment
High employment is one of the Government's main macroeconomic objectives ­ as such the
topic of employment/unemployment comes up very frequently in exams. Here is all you
need to know about it.


Measuring Unemployment:

There are two main ways of measuring the number of people that are unemployed:

Claimant…

- Strong Pound, so higher demand for Imports and lower demand for Exports
- Higher Interest Rates
- Any other factor that lowers Aggregate Demand

Cures

- Putting demand back into the economy i.e. through lowering interest rates,
cutting taxes
- Increasing government spending
- Government subsidies for struggling businesses…

- Relocation grants ­ again the job vacancies may be there elsewhere in the
country
- Government subsidies to businesses so prices for certain industries can be more
competitive

5) Hidden Unemployment ­ people who may be interested in taking work but aren't
classified as being unemployed according to the…