Employment And Unemployment Flashcards
(21 cards)
Unemployment
The state of being unemployed/out of work
Employment
The state of having paid work
Underemployment
Workers who are in a job which is lower skilled than what they’re capable of
Wage inflexibility
Wages that don’t respond to a change in price and demand changes
Migration
Movement of people from one place to another with the intention of settling
Real wages
Wages that adjust for inflation
Economic activity
The activity of making, providing, purchasing or selling goods and services
Cyclical unemployment
Occurs because of changes or fluctuations in the country’s economy over time
Structural unemployment
When a worker’s organisation or industry reorganises but the workers have no other skills for a different skilled job
Frictional unemployment
The process of moving from one job to another
Seasonal unemployment
People unemployed during certain times of the year because demand for their type of work is low E.g beach lifeguards
Economic inactivity
The section of the working age population who are not in employment and aren’t seeking employment
Claimant count
A measure of the number of people claiming unemployment benefits (JSA)
Labour force survey
A survey which counts those who are unemployed but have looked for work in the past month
Two advantages of using the LFS to measure unemployment
1) More reliable than the CC as it includes all types of unemployment
2) LFS is good for international comparisons and previous figures
Two disadvantages of using the LFS to measure unemployment
1) not representative of the whole country
2) it’s difficult to determine whether someone is unemployed or not leading to inaccurate results
Two advantages of the CC to measure unemployment
1) precise and accurate figure of unemployment
2) quick and easy to collect
Two disadvantages of the CC to measure unemployment
1) incomparable between counties due to exchange rates being different
2) Gov frequently change the criteria who is eligible for the JSA, making figures hard to compare
Three types of unemployment
Frictional
Seasonal
Structural
Two causes of real wage inflexibility
1) Companies prioritising shareholder interest over employee wages
2) poor productivity
One cause of underemployment
Employees having to work in a new industry that gives them a lower skilled job
