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Measures of unemployment and causes

Labour Force Survey - Shows exactly who is working and their proffession.

Job Seekers Allowance - Measures the amount of people whom are claiming benefits for their unemployment. 

Causes of Unemployment

  • Lack of skills
  • Redundancy / businesss failure
  • Disability
  • Excess labour supply
  • Technology
  • Lack of motivation and reliant on the welfare state. 
  • Immigration
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Types Of Unemployment

Cyclical Unemployment - The fluctuating rate of unemployment resulting from swings in the business cycle

Frictional Unemployment - The time period when a worker is searching for or transitioning to a new job.

Voluntary Unemployment - When an individual makes a conscious decision to not work.

Structural Unemployment - When there is unemployment due to workers not having the right skill set for the jobs that the economy can offer.

Seasonal Unemployment - Workers are not employed all year round due to their industry being specific to a season.

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Immobility of Labour

Geographic Immobility of Labour - 

Workers refuse to travel for work. They do not want to move house and they do not want to disrupt their family. 

Occupational Immobility of Labour - 

Labour does not have the skills and training to switch jobs easily which means that

  • other workers must work harder
  • firms must invest in training
  • workers confidence is knocked.
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