Unemployment Flashcards
(16 cards)
define frictional unemployment
changing jobs, involves a period out of work
define cyclical unemployment
number varies according to the business or economic cycle
define structural unemployment
mismatch of the skills of those unemployed and skills new jobs require, change in economys structure
define occupational immobility
skills are not required or suitable for existing job vacancies
define geographical immobility
individual can’t get a job in a different area due to family ties or high costs
define hidden unemployment
known to exist but isn’t included in official govt figures
reasons for declining industry
- workers replaced by machinery
- products made more cheaply overseas
- product becomes obsolete
economic costs of unemployment
- private costs for cyclical unemployment
- fall in living standard
- loss of income
- loss of marketable skills
explain real wage unemployment
market clearing wage rate rises above equilibrium
and demand falls as businesses cant afford as many workers but supply increases, creates jobs as people could work less days so business must hire others
define fiscal drag
because of a pay rise they are dragged into a higher tax bracket
define personal tax threshold
stealth tax
define duty
a specific tax at a specific rate on specific products
business pro’s
- bigger pool of surplus labour
- less pressure to pay higher wages
- less risk of industrial strike action
business con’s
- fall in demand for goods
- fall in demand for business
- negative multiplier from closure of major employers
define unemployment
anyone between 18-67 who is able available and actively seeking work
what are the 2 measures of unemployment
claimant count and labour force survery
