Unemployment Flashcards
Definition Of Working Age Population
What Is The Working Age Population?
People in the economy who are willing and able to work.
15-64.
Definition Of Labour Force
Everyone willing and able to work, excluding students/retired.
Employment Rate Formula
People Working/Labour Force.
Unemployment Rate Formula
Number Of People Not Working But Seeking Work/Labour Force.
Definition Of Underemployment
Number Of People Working But Wanting More Hours.
Activity Rate Formula
Number Of People Working/Working Age Population.
Inactivity Rate Formula
Number Of People Not Working/Working Age Population.
Definition Of Claimant Count
People Claiming Benefits (mainly unemployment benefits).
Definition Of Hidden Unemployment
People Unemployed Whilst Not Claiming Unemployment Benefits (doing something untaxed).
Definition Of Seasonal Unemployment
Example?
Where Workers Are Unemployed At Various Points In The Year.
Unemployment Rising During Tourist Season.
Definition Of Cyclical Unemployment
Example?
Unemployment caused by changes in economic activity.
Workers being let go because a business went bust.
Definition Of Frictional Unemployment
Example?
Unemployment which exists due to people moving between roles.
Economically active workers who are between jobs.
Definition Of Structural Unemployment
Example?
Long lasting unemployment due to decline in certain industries.
Workers in the North of the country can’t find jobs whilst the South is fully employed.
Definition Of Classical Unemployment
Example?
Unemployment due to real wages being stuck at a rate above the rate needed to lower unemployment.
A high minimum wage is making it too expensive for businesses to hire more workers.
