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Definition
Unemployment is the number
of people who are of working
age but are not working.…read more

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Current rate and trend of
unemployment
A few months after the start of the recession in 2008,
unemployment rose sharply. When the global financial crisis hit,
the number of people unemployed was 1.6 million.
Towards the end of 2009, with the UK coming out of its worst
recession since the 1950s,the number of people unemployed
was almost a million higher at 2.5 million
Since then British firms have continued to cut back on staff as
the recovery has continued to falter. Unemployment peaked at
almost 2.7 million at the end of 2011, its highest level for 17
years.
Unemployment started to remain stable towards the end of
2011, and the start of 2012 saw the first decrease in almost a
year. The overall number of people in employment has been
going up.
The current rate of unemployment is 7.9 % it fell from 8.1 %…read more

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Main measures
2 measures are :
-Claimant count- the number of people
claiming unemployment related benefits
- Labour force survey ­ measures those who
are without any kind of job. This includes
seasonal unemployment and frictional
unemployment.…read more

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Natural rate of unemployment
The natural rate of unemployment is the
percentage of people who are voluntarily out
of work when the labour market is in
equillibrium.
This is currently 4.87%
Keynesian view the natural rate of
unemployment as involuntary
However classicalist differ and view it as
voluntary.…read more

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The determinants of NRU
Availability of job information
Skills and education
Degree of labour mobility/flexibility
Hysteresis ­ this is where there is a constant increase in
unemployment
Value of welfare benefits replacement ratio
Trade union power ­ if they artificially raise the wage rate
then firms would cut back on workers this would lead to
an increase in unemployment
Taxation system ­ if tax is too regressive people wont
want to work
Social factors…read more

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Comments

davidsalter

This is a 14 slide presentation looking briefly at unemployment as required up to A2 level. It is helpful for more visual learners and may point out areas where more study is required.

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