unemployment Flashcards
(11 cards)
what is supply side unemployment
linked to the ability and willingness of workers to supply their labour to firms
what is demand side unemployment
due to lack of AD
example of structural unemployment
In Wales - used to be a big mining area - therefore when mines shut down the workers were only skilled in mining and didn’t have any other options for jobs to go into
what is structural unemployment
long term economic shifts leading to long term unemployment
when does structural unemployment occur
as a result of occupational and geographical mobility
what is geographical mobility
when people cant move to where the jobs are
what is occupational mobility
when people are unable to move into a new job because you don’t have the right skills
what is cyclical unemployment
linked to the economic cycle - workers are in derived demand
drops in AD will lead to increased unemployment
when does cyclical unemployment occur
when there is a negative output gap (fall in AD)
how to improve cyclical unemployment
the economy needs to grow
