Assessment task 2 Flashcards
(33 cards)
What is a labour market?
A labour market is the interaction of supply and demand of labour
What does derived demand mean?
It is a demand for a good or service that results from the demand of a different or related good or service
What factors affect the demand of labour
As it is a derived demand, the demand for labour is heavily dependent upon individual firms’ economic performance; consequently, these factors are:
The output of the firm
Productivity of labour
Cost of other inputs
What is the productivity of labour?
It can be defined as the output per unit of labour (Per unit of time)
What is short term productivity?
Is the period whereby all inputs (factors of production) are fixed except for labour
For E.g. In the short term, a firm cannot make adjustments to capital (Money, machinery, etc) or land/resources but they can adjust labour input (Hire or fire workers)
What is long termn productivity?
is the period whereby all can be adjusted to achieve the most efficient and productive combination of inputs (i.e the factors of production)
What is multifactor productivity (MFP)
Firms generally look for the most efficient combination of the factors of production to maxamise outputs/profits
What does WAG,CON,SKI,MOB stand for and what is it in realtion to
Factors affecting the supply of demand, and it stands for wages, conditions, skills, mobility
Define the Australian workforce
The workforce can be defined as the portion of the population who are over 15 years of age and are eithe employed or unemployed but activley seeking employment.
What factors define the workforce?
Population size
Natural increases
Net migration
Age distribution
What are the labour market trends?
Unemployment
Changing employment structures
Low rates in the productivity of labour
Low wage growth and decling real wages
Define unemployment
Unemployment refers to the situation in which individuals want to work but are unable to find/secure work.
What rate was unemployment at in the early 2000s
5-6%
What happend in 2020 due to covid
Sharp increase in unemployment in 2020 due to COVID which caused a decrease in aggregate demand
What happened during the rebound after covid?
Rebound, which led to an increase in aggregate demand due to the fiscal payments, low interest rates and an increase in the propensity to save
What are the different types of unemployment?
Cyclical
Structual
Long term
Seasonal
Frictional
Hardcore
Hidden
Underemployment
What is cyclical unemployment?
When there is a fall in the business cycle and firms are forced to cut back production and lay off workers
What is structual unemployment?
Structural unemployment occurs when there is a reconstruction of the economy, and your skills are no longer relevant
What is long-term employment?
When one is unemployed for longer than 12 months and than finds it hard to get a job again
What is frictional unemployment?
Frictional unemployment is when one is moving between jobs and it is the time in between jobs
What is hardcore unemployment?
Individuals who are considered unsuitable for labour for a variety of reasons
What is hidden unemployment?
Hidden unemployment is individuals who are not counted in the unemployment figures
What is underemployment?
Underemployment is individuals with part time or casual work but want full time employment
What is part time employment?
Less than 55 hours of work a week
