Unemployment in the UK Flashcards
Why will we always have some unemployment?
We can never reach full employment, always people between jobs.
What is frictional unemployment?
Between jobs, looking.
What is natural unemployment?
Made up of frictional, natural and structural.
What is voluntary unemployment?
Not actively looking for employment.
What link did the credit crunch have with AD and Cyclical Unemployment?
Decrease in AD leads to a increase in cyclical unemployment.
When was the credit crunch?
2008.
What effect did the credit crunch have on the UK?
Increased cyclical unemployment.
What is cyclical unemployment?
Cyclical unemployment is the component of overall unemployment that results directly from cycles of economic upturn and downturn.
What does full employment mean?
Number of people wishing to work equals number of workers employers wish to hire so there is no lack of demand for workers.
At a economic equilibrium (yfe) is there cyclical unemployment?
No, what unemployment we have is natural.
How do we measure unemployment?
Claimant Count, Labour Force Survey
Which types of unemployment count to the natural unemployment?
Frictional
Structural
Voluntary
(Supply side solutions)
Why does cyclical unemployment occur?
Lack of AD
(Demand side solutions)
What is cyclical unemployment often also called?
Keynesian/Demand Deficient unemployment
