Definition: when you're out of work but actively seeking employment.
Current level (as correct in April 2013)=7.9%
No target rate for unemployment.
Types of unemployment:
Cyclical-dependant on the booms and busts of the economy.
Frictional-the time between finishing one job and starting another.
Seasonal-dependant on seasons/time of year.
Structural-changes in the market alter the demand for labour.
Claimant count-unemployment level based on the number of people reciveing Job Seekers Allowance.
-measured every 2 weeks
-have to be actively seeking work and able to work immediatley.
Labour Force Survey-unemployment rate based on the potentially economically active population.
-measured every quarter.
-May not be able to pay mortgage/bills
-Underutilisation of a scarce resource
Decreased spending/comsumption due to less avaliable income
-Cost to businesses
-Increased spending on benefits and less income tax and VAT means a bigger government deficit
-Popularity of government decreases
-Depression/other health problems which increases the cost to the NHS
-Crime rate rises
-Motivation to find a job decreases so they may never go back to…