Employment

Question 1

What is economic inactivity

Answer 1

The section of people in the working age which is not employees or seeking a job. For example someone in full-time education.

Question 2

What is the unemployment trap?

Answer 2

Where the difference in unemployment benefits and money you would make working is too small so there is no incentive to get a job.

Question 3

Classical (real wage) inflexibility

Answer 3

When the minimum wage is above a certain level that it should be. And the labour supply is not taht high so firms will not employ.

Question 4

Seasonal unemployment

Answer 4

When a job shuts down or is not needed during seasons. For example someone who shuvels snow in the summer.

Question 5

Cyclical unemployment

Answer 5

When there is a poor economy and so a weak ad.

Question 6

What is structural unemployment.

Answer 6

When jobs become obselte and now workers have a lack of skills. For example a cashier when a automated cashier is implaced.

Question 7

What is frictional unemployment

Answer 7

People who are looking for their first jobs or switching jobs. For example a uni student after graduation looking for a job. Or someone who someone who leaves a job to care for there parent who now look for a job.

Question 8

4 causes for underemployment

Answer 8

1.Cyclical unemployment
2.Frictional unemployment
3.Structural unemployment
4.Seasonal unemployment

Question 9

What is underemployment

Answer 9

When people are either looking for an extra job, more hours or are under-utilising their skills

Question 10

Criteria for labour force survey

Answer 10

1.Been out of work for 4 weeks
2.Able to start within 2 weeks
3.Wokring age (15+)
4.Need to be seeking a job

Question 11

Disadvantages of claimant count

Answer 11

1.Lots of unemployed people who don’t claim benefits - people under 18
2.People want to claim- hidden unemployment

Question 12

Advantages of claimant count

Answer 12

1.Accurate - u can find out the actually number of people claiming benefits
2.Easy to classify if someone is actively seeking work
3.Easy to identify regional or local differences
4.The data is produced monthly

Question 13

Disadvantages of LFS

Answer 13

1.Sample error - only asks around 60,000 households, unrepresentative
2.Cost and time consuming

Question 14

Advantages of LFS

Answer 14

1.Comparable across the world- used in many countries
2.Comparable over time - criteria hasn’t changed much over time

Question 15

Detention of claimant count

Answer 15

The number of people who claim unemployment- related benefits

Question 16

Defenition of labour force survey

Answer 16

All people actively seeking and available to work, whether or not they claim benefits