Employment Flashcards
What is economic inactivity
The section of people in the working age which is not employees or seeking a job. For example someone in full-time education.
What is the unemployment trap?
Where the difference in unemployment benefits and money you would make working is too small so there is no incentive to get a job.
Classical (real wage) inflexibility
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.
Seasonal unemployment
When a job shuts down or is not needed during seasons. For example someone who shuvels snow in the summer.
Cyclical unemployment
When there is a poor economy and so a weak ad.
What is structural unemployment.
When jobs become obselte and now workers have a lack of skills. For example a cashier when a automated cashier is implaced.
What is frictional unemployment
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.
4 causes for underemployment
1.Cyclical unemployment
2.Frictional unemployment
3.Structural unemployment
4.Seasonal unemployment
What is underemployment
When people are either looking for an extra job, more hours or are under-utilising their skills
Criteria for labour force survey
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
Disadvantages of claimant count
1.Lots of unemployed people who don’t claim benefits - people under 18
2.People want to claim- hidden unemployment
Advantages of claimant count
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
Disadvantages of LFS
1.Sample error - only asks around 60,000 households, unrepresentative
2.Cost and time consuming
Advantages of LFS
1.Comparable across the world- used in many countries
2.Comparable over time - criteria hasn’t changed much over time
Detention of claimant count
The number of people who claim unemployment- related benefits