Labour Markets Flashcards
(47 cards)
How is unemployment measured?
-according to internationally accepted guidelines specified by the international labour organisation (ILO)
Unemployed people in the UK are:
-without a job, have actively sought work in the last four weeks and are available to start work in the next two weeks o
Or:
-have found a job and are waiting to start it in the next two weeks
What does claimant count measure?
The number of people claiming benefits principally for the reason of being unemployed
Why does claimant count and unemployment rate differ?
-Government polices on who is eligible for benefits (Full time students cannot be claimants but can seek part time works so can show up as unemployed)
-Demographic trend - people over 65 seeking jobs would not be eligible to be claimants but would show up as unemployed. With an aging pop. This segment is growing
What is the labour force?
The no. Of people in an economy who are able and willing to work
What is employment rate?
The % of working age population (16=64) that is employed
What is the activity rate?
% of working age population willing & able to work
(Employed + Unemployed)
What is unemployment rate?
% of people who are able & willing to work that are unemployed
What are dependency ratios?
The burden on the productive part of the population to maintain the upbringing and pensions of the economically dependent
Child population % / adult population %
What is underemployment?
Part time workers who would like to work longer hours or people who are over qualified for the job that they are doing so that their skills are not being utilised
What is precarious employment?
Permanent jobs without permanent employee rights, typically poorly paid (cannot support a household) & insecure (limited legal protection for tenure and conditions)
What is frictional unemployment?
Short term unemployment that occurs when workers are between jobs
What is seasonal unemployment?
When demand for workers is seasonal leaving them unemployed during the off-season
What is real wage unemployment?
Unemployment that occurs because wages are stuck at too high a level for markets to clear
What is demand deficient (cyclical) unemployment
When their is insufficient AD in an economy to provide jobs for everyone seeking a job
What are skills shortage?
Tends to occur in specific markets where demand for labour > supply of labour
What is equilibrium unemployment?
When demand = supply in the labour markets so wages stay constant
Natural rate of unemployment
What is structural unemployment?
When the pattern of demand or supply changes (e.g due to technology advances) leaving workers unemployed
What types of structural unemployment is there?
Occupation/sectoral
Geographic
What is occupational unemployment
Where there is less/no demand for certain occupations or sectors of the economy
What is geographic structural unemployment?
Where there is less/no demand in certain regions of the economy
Structural unemployment can lead to…
Labour market hysteresis
What is labour market hysteresis?
When umemployment leads to a loss of skills and confidence, making it harder for workers to get a job and trapping them in unemployment.
These workers may drop out of the labour market entirely and are called discouraged workers/
What is youth unemployment?
When young people experience difficulties in getting jobs as they do not have experience
