Unemployment Flashcards
What is frictional unemployment?
Related to the process of changing jobs which may involve a period out of work
What is cyclical unemployment?
Category of unemployed whose number varies according to the business or econ cycle (demand deficient unemployment)
What is structural unemployment?
Where there is a mismatch between the skills of the cremployed and the required skills. (Change in structure of the economy)
What is classical/real wage unemployment?
A rise in real wages above the market clearing level causes a contraction in labour demand and lower employment
What is hidden unemployment?
Unemployment known to exist but is not included in official govt figures
What is seasonal unemployment?
Certain times of the year unemployment increases in certain markets
What are the policies to deal with unemployment?
- expansion of apprenticeship schemes
- improving geographical mobility of labor
- active regional development policies
- targeted macro stimulus policies to boost growth
Why does high unemployment matter? (Fiscal costs)
- less tax revenue eg income vat council corporation etc
- higher welfare (lose job = increase welfare)
Why does high unemployment matter? (Economic costs)
- lost output (waste of resources)
- lower gdp growth (lower living standards)
What is geographical immobility?
Vacancies in another location
What is occupational immobility?
Don’t have the correct skills for a job
What is Says Law?
Supply creates its own demand
