Employment Flashcards
(27 cards)
What is employment?
The number of people of working age who are in work
What is unemployment?
The number of people who are working age who are seeking who but don’t have a job
What is involuntary unemployment ?
Individuals who would like to accept a job at going rate but is unable to find employment
What is voluntary unemployment?
Individuals who choose not to accept a job at the going wage rate
What is the labour participant rate ?
The proportion of working age people who are economically inactive
Who are the economically inactive?
Working age people who are neither in employment nor unemployed so not part of the labour force
What happens at full employment?
The economy is making effective use of it’s resources of human capital stock, their is no spare capacity as operating on production possibility curve
Does full employment mean unemployment is zero?
No,people are still searching for work
How do you measure employment?
> labour force survey
claimant court
What is the labour force survey?
Measure % of the workforce without a job,looking for work. It defines unemployment as people without a job, want a job, actively sought work in the last 4 weeks and available to start in next 2 weeks
What is a benefit of using the labour force survey?
Can be used to make international comparisons
What is a consequence of using the labour force survey?
It is calculated form a survey so is inaccurate as an estimate
What is the claimant court?
Measure of the number of people registered as unemployed and claiming job seekers allowance
What is a benefit of using the claimant court?
Can be conducted cheaply and easily as government have a record of JSA
What is a consequence of using claimant court?
> It excludes those who are unemployed but don’t claim JSA
not all countries have a benefit system
universal credit roll-out has distorted the measure
What are the types of unemployment?
Frictional, Cyclical, Seasonal, Structural and Demand-deficient
What is frictional unemployment?
Unemployment associated with job search or those who are between jobs- short term
What is cyclical unemployment?
Unemployment that arises throughout the course of the economic cycle, during a downturn or recession-short term
What is demand-deficient unemployment?
Unemployment that arises because of a deficiency in AD in the economy, e.g equilibrium is below F.E - short term
What is seasonal unemployment?
Unemployment that arises during certain seasons in the year -short term
What is structural unemployment?
Unemployment that arises due to changes in the pattern of the economic activity within an economy, e.g deindustrialised so economy more reliant on secondary and tertiary sectors -long term
What are the effects of full employment?
> economy operating efficiently and not experiencing the negative consequences
risk of experiencing demand pull inflationary pressure
under-employment
youth unemployment
discouraged workers
What is under-employment?
Workers who are in employment but not using skills to full extent
What are discouraged workers?
Those who have been unable to find who and are no longer looking- leads to a reduction in labour market productivity and mobility
