Unemployment Flashcards
(33 cards)
What is the active population
People of working age who are able to work and actively seeking work or actively working
What is the inactive population
People of working age who aren’t able to work or aren’t actively seeking work
What is unemployment
When someone is of working age, willing and able to work and they are actively seeking work but they are not currently working
What is the unemployment rate for the UK using this data
What is the unemployment rate
The % of people unemployed out of the active population
What is the formula for the unemployment rate
What is the formula for the employment rate
What is the employment rate of the UK using this data
What is the activity rate
What percentage of the working age population are actively seeking work or actively working
What is the activity rate also known as
The participation rate
What is the formula for the activity rate
What is the participation rate of the UK using this data
What are two reasons why the employment rate might fall
If the number of employed people falls
Number of working age population increases
What are the two reasons why the unemployment rate might fall
A decrease in the number of unemployed people
An increase in the economically active population
What are the two ways of measuring unemployment
ILO Labour Force Survey
The Claimant count
Explain how the Labour Force Survey is conducted
Survey 80,000 households across the UK - starts with face-to-face interview and then a call every 3 months
They ask if anyone has been out of work for 4 weeks and is ready start work in the next 2 weeks and they count these people as unemployed
Then the ILO use this data to estimate the levels across the other millions of households
Explain how the Claimant count measures unemployment
Measures how many people are claiming unemployment benefits like Job Seekers Allowance
What are the limitation to the Labour Force Survey
Only surveys 80,000 households out of 27 million households
What are the limitation to the Claimant count
Not everyone who is unemployed will claim benefits so unemployment will be underestimated
Give three reasons why someone who is unemployed might not claim benefits
Stigma around claiming benefits
Have to line up at job centre and fill out lots of forms to claim
If your partner is a high earner you’re not allowed to claim benefits
What is underemployment
When worker are employed but working fewer hours than they want to or underusing their skills
What are the 5 types of unemployment
Classical
Structural
Cyclical
Frictional
Seasonal
What is a different name for classic unemployment
Real wage unemployment
What is classical unemployment
When wages are above the equilibrium, creating excess supply of labour and a shortage of demand because the firms can’t afford the high wages
