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Is an alternative measure of economic growth to gdp. GPI still uses the gdp figure although it adds on all benefits to society's well being and also deducts all those negative effects of society's well being. This is a better indication of economic growth as it looks at if the growth is beneficial to our well being.



Is a multilayer indicator of statistics which looks at 'progress" of 'is our life getting better'. The ABS uses four domains which are society, economy, environment and governance, to determine our progress. Although some domains may not be seen as important to some as it's highly subjective to what individuals value in life.


Labour force

Consists of all those who are 15 years of age and able and willing to work. The labour force includes those employed and unemployed regardless of their activity.


Participation rate

Refers to those who are either classed as employed or are unemployed but activity looking for a job. This is the active proportion of the labour force.


Employed person

Represents the % of the labour force who are 15 years and older and currently employed. To be employed they must be working full time therefore 35 hours a week or part time for 1 hour a week or 15 hours in a family business.


Unemployed person

Refers to those who are actively looking for any type of employment but can't succeed. This also includes those who are physical able and willing to work or looking to resume work after being laid off.


Job vacancies

Refers to the job offer advertisements in the media which aren't for filled. Essentially there is demand for employs to increase the productive capacity and economic growth. Demand is outweighing the potential supply levels


Under utilised rate

Describes the rate to the extent of which the labour force isn't working to capacity. This included those who want to work but can't find employment and those who wish to be promoted from part to full time.


Hidden unemployment

Refers to those who would like to work but are discouraged due to a weak labour market.


Types of employment

Cyclical - occurs due to the business cycle trends, boom - low unemployment and vise versa.
Frictional - time period between jobs were a working is looking for new work - labourer
Structural - occurs when there's an over supply of skilled workers and the economy can't cater.
Seasonal - occurs due to a change of season and the businesses correlation to the season. Sorrento
Hardcore - occurs due to those struggling to find work due to a lack of skills or education. Drop out


Material and non material

Described economic wellbejng per capita consumption of good and services. What individually we have.
Describes our quality of life, highly subjective depends on what we see as important. Includes low pollution, crime rate & leisure time.


Goal of low inflation

is achieved when the level of prices for goods and services are increasing 'fairly slowly' and within the target level of 2-3% per annum of average over the business cycle.


Goal of strong and sustainable economic growth

The rate needs to be growing at a rate so that it doesn't cause conflict towards the other goals. It also needs to be environmentally healthy to ensure the current and non current living standards.


Goal of low employment

Refers to achieving the lowest possible rate of unemployment without causing inflation. This is also known as nairu or zero cyclical, because there will always be a degree of cyclical unemployment but we aim to minimised unemployment from fssh to equal 4-5%.



Is the measurement used to identify economic growth and is expressed as an average of 3 estimates, gdp (I,E,P). GDP is the common measurement but has a few weaknesses, for example, it doesn't include non market activity and the figures are modified due to inflation.



I - the total market value of all investment
E - the total market value of all expenditures
P - the total market value of all production