Employment and unemployment 2.1.3 unit 35

Question 1

What are the four important ratios concerned with employment levels?

Answer 1

• Employment rate.
• Unemployment rate.
• Activity rate.
• Inactivity rate.

Question 2

What are some of the causes of unemployment?

Answer 2

• Frictional unemployment.
• Seasonal unemployment.
• Cyclical or demand deficient unemployment Caused by the boom and bust cycle.
• Structural unemployment (This occurs when demand for labour in a market is less than the supply of labour.)

Question 3

What are the cost of unemployment?

Answer 3

-Costs to the unemployed and their dependants.
-Costs to local communities.
-Costs to the government.
Costs to consumers.
-Costs to firms (as it shows a loss of demand in there respective market).
-Costs to the economy as a whole.

Question 4

What are some types of structural unemployment?

Answer 4

Examples of structural unemployment are :-

• Sectorial unemployment
• Regional unemployment
• Technological unemployment