Those who are registered as able, available and willing to work at the going wage rate but cannot find work despite an ACTIVE SEARCH FOR WORK. (if not active in labour market, cannot be classed as unemp)
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What are the two measurements of Unemployment in the UK?
The claimant count & The labour force survey.
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How does the claimant count show unemployment rates?
Measures no of people eligile (18+, active, low savings) that claim Job Seekers Allowance.
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How does the Labour Force Survey (LFS) show unemployment rates?
Includes 16-65 year olds, shows those who are unemployed but looking for work or waiting to start in the next 2 weeks.
When workers are between jobs due to delays between transitioning to new jobs. REMEDY: Improve job info
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How does Structural unemployment work?
Workers have the wrong skills to work in the wrong place due to declining industries and immobility of labour eg steelworkers. REMMEDY: Subsidies, improve mobility, retraining.
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How does Seasonal unemployment work?
Unemployment for part of year due to seasonal variation in demand. REMMEDY: retraining.
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How does Cyclica unemploument work?
It is unavoidable when all firms need fewer workers due to low AD in the economy. REMMEDY: Increased G or lower taxes.
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Why is unemployment bad for the economy?
Unemployment suggests there will be lower income so less C=lower AD, SOL, GDP and growth and less tax revenue. Makes government look bad.
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What is Underemployment?
When people work part time but are willing and able to take on more hours but do not recieve them, however they are pleasing for government as they reduce Unemployment figures.
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What is structural Unemployment?
Occurs when industries go into decline due to a drop in demand for a product or due to a substitute good taking over. REMEDY: retraining.
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What are segmented labour markets?
A split in the labour market between the formal primary sector (better qualified, paid and dependable in a career) and the informal secondary sector (mobile with low job security).
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What are the 4 individual costs of unemployment?
Reduced spending power, loss of human capital, lack of self esteem, health suffers.
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What are the 4 Governmental costs of unemployment?
Potential unpopularity, higher spending needed on benefits, less money to spend on education&training, lower T.R and VAT collection.
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What are the 4 local area/local economy costs of unemployment?
May increase crime, business may suffer due to overall demand, reigon may become less competitive due to ineffective use of resources, less spending by individuals in local economy.
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What are the 4 costs of unemployment to other workers?
Loss of job security, may have to accept pay cuts to kkep jobs, may have to pay higher tax to cover increased benefits, MOST IMPORTANTLY: Will save more due to less confidence restricting growth.
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Other cards in this set
Card 2
Front
The claimant count & The labour force survey.
Back
What are the two measurements of Unemployment in the UK?
Card 3
Front
Measures no of people eligile (18+, active, low savings) that claim Job Seekers Allowance.
Back
Card 4
Front
Includes 16-65 year olds, shows those who are unemployed but looking for work or waiting to start in the next 2 weeks.
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