Flashcards in Unemployment Deck (13):
how do you measure unemployment?
(unemployed / labour force) x 100
what are the two ways of measuring employment?
claimant count and labour force survey
what is a claimant count?
the number of people claiming JSA.
what are the limits of the claimant count?
you can't claim until you have been unemployed for at least 4 weeks.
some people don't claim as they don't need it or they are too proud.
what is the labour force survey?
internationally recognised questionnaire
what are the limits with the labour force survey?
people can lie, only as accurate as the sample.
what are the causes of unemployment?
what is structural unemployment?
The concept that the unemployed do not have the skills or experience to take up available vacancies.
what is cyclical unemployment?
People lose their jobs when the economy is in recession and find jobs when the economy is growing. When people are spending more money (interest rate cut) firms need a higher supply and thus a higher amount of workers in order to meet demand therefore unemployment rates will fall. And vice versa.
what is frictional unemployment?
People that are out of work yet have work lined up for them soon. (Not an important cause.)
what is immobility of labour?
Restraints such as the commute (in terms of time and cost), households (current and in desired area) and one's social life make the unemployed less willing/able to move towards the work.
what are the consequences of unemployment for the individual?
Stress and health problems of being unemployed – amongst studies of unemployed men, signs of depression anxiety and health problems are noticeably higher.
Loss of earnings to the unemployed – unemployment is one of the biggest causes of poverty.
Potential homelessness – loss of income leaves people sufficient income to meet housing costs. Also known as 'hysteresis'
Harms future prospects – those who are unemployed will find it more difficult to get work in the future.
Lower incomes usually result in a lower standard of living.