Week 2 Labour Markets :

Question 1

Cyclical Unemployment ?

Answer 1

due to market demands
E.g : contraction in the market, so less employees are needed (laid off)

Question 2

Seasonal Unemployment ?

Answer 2

Limited due to time of year.
E.g: Farmers –> strawberry picking less opportunity in winter than in the summer

Question 3

Structural Unemployment ?

Answer 3

Structure of the economy changes
(jobs being replaced by machinery)

Question 4

Frictional Unemployment ?

Answer 4

Both workers and firms need time to locate each other
Time in between firm and employee finding each other

Question 5

Why may short term unemployment occur ?
what may occur if you are unemployed for too long ?

Answer 5

Searching for jobs
limited info,
Improves the allocation of resources
Could be facilitated with better info provisions
If unemployed for too long you may settle for lower wages due to the need for money

Question 6

Pros of an Internet Job search ?

Answer 6

+ reduces cost associated with job search
+ reduced time spent on the job search (use of codes / algorithms to rule out certain candidates)
+ More competition for jobs due to high application
+ actual work done by employees will be delivered over the internet rather than in person
+ less likely to be dependent on local market conditions

Question 7

Examples of discrimination in the labour market ?

Answer 7

Unequal pay is illegal under the 2010 equality act
Women earn around 18% less than men
Average earnings of ACS are about 65% of those of white males