2 - Measures Of Performance - Employment/unemployment Flashcards
(15 cards)
Working population
Total number of individuals who are of working age and capable and available for work
Labour force
Those who are employed or actively seeking employment
Economic inactivity
Not being engaged in labour force
- pensioners
- students
Unemployment
Someone of working age, willing and able to work, and actively seeking work, but can’t find job
Unemployment rate
% of labour force that are unemployed
Labour force survey
Asks 60-70,000 UK households to self-classify as being employed, unemployed or economically inactive
Claimant count
Amount of people claiming JSA
4 types of unemployment
- cyclical
- seasonal
- frictional
- structural
What’s cyclical unemployment?
The unemployment rate that rises during economic downturn
- caused by fluctuations in business cycle
What’s frictional unemployment?
Short-term unemployment caused by people moving between jobs/locations
What’s seasonal unemployment?
Seasonal worker, eg. Construction workers, may be without paid jobs due to time of year where there’s less need for their work
What’s structural unemployment?
Caused by changes in economy
- mismatch of skills
- lack of geographical and occupational mobility
Underemployment
Individuals are employed but their employment is insufficient in terms of:
- hours worked
- skills
Economic costs of unemployment
- fall in real incomes
- lower living standards
- lower tax revenue
- larger budget deficit
- higher welfare costs
- loss of workers to other countries
Social costs of unemployment
- increase poverty and welfare dependency
- more physical and mental health problems
- social problems, shoplifting etc.
