2.1.3

Question 1

The claimant count

Answer 1

This counts the number of people claiming unemployment related benefits, such as job seekers’ allowances
They have to price they are actively looking for work

Question 2

Claimant count evaluation

Answer 2

• Not every unemployed person is eligible for or bothers to claiming JSA
• those with partners on high incomes will not be eligible for the benefit even if they are unemployed
• the method generally underestimated the level of unemployment

Question 3

The international labour organisation and the UK labour force survey

Answer 3

Directly asks people if they meet the following criteria:
- been out of work for 4 weeks
- able and willing to start working within 2 weeks
- workers should be available for 1 hour per week part time unemployment is included

Since pert time unemployed are less likely to claim unemployment benefit, this method gives a higher unemployment figure than the claimant count

Question 4

Unemployed

Answer 4

Those able and willing to work but are not employed

Question 5

Underemployed

Answer 5

Those who have a job, but their labour is not used to its full productive potential

Question 6

Structural unemployment

Answer 6

Occurs with a long term decline in demand for the goods and services in an industry, which costs jobs

Question 7

Frictional unemployment

Answer 7

This is the time between leaving a job and looking for another job

Question 8

Seasonal unemployment

Answer 8

This occurs during certain points in the year, usually around summer and winter

Question 9

Cyclical unemployment (demand deficiency)

Answer 9

Caused by a lack of demand for goods and services
Usually occurs during periods of economic decline and recessions

Question 10

Real wage inflexibility

Answer 10

• Wages above market equilibrium may cause unemployment
• if demand shifts to the left, fall in consumer spending so more unemployment since wages are not able to adjust
• classical economists argue that by letting wages be flexible, removing trade union power and removing the NMW, wages could fall and unemployment would fall to 0
• only realistic in a perfectly competitive market which isn’t realistic eaither

Question 11

Migrants and employment

Answer 11

Migrants are usually of working age
Supply of labour at all wage rates tends to increase with more migration
Bring high quality skills
Increases productivity and increase he skill set of the labour market
Increases global competitiveness
Higher skilled workforce is more employable
Economies progress over time and so higher skills are needed to work in them