Employment:
Employment: people who are either working for firms or other organisations, or are self-employed (
this definition is rather imprecise as it does not account for underemployment or discouraged workers
etc).
Unemployed: people who are economically active but are not in employment - those of working age
who are willing and able to work but cannot find a job despite an active search
Economically inactive: people of working age who are not looking for work for a variety of reasons,
this could be because they are discouraged workers (have previously tried to find employment but are
no longer looking for work)
Workforce: people who are economically active - either in employment or unemployed.
Full employment: a situation in which people who are economically active in the workforce and are
willing and able to work at the going wage rate are able to find employment.
● Means that the economy is making to best use of its labour resources and so it producing the
maximum possible output
● However there will always be some unemployment in society as some people may be
between jobs or engaging in job search
● If the economy were operating very close to full capacity there would be an upwards pressure
on wages and therefore prices - there is a conflict between inflation and reaching full
employment (phillips curve)
● In light of the potential pressure on prices, some economists have argued that full
employment should be regarded as the level of unemployment at which there is no tendency
for inflation to accelerate.
Measuring Unemployment:
Limitation of both measures : does not consider underemployment (when people cannot find the
jobs or which they are qualified for and so take jobs in second-choice occupations - in a UK context
could be where workers are unable to work for as many hours as they would like). There is also the
problem of discouraged workers where the long-term unemployed may leave the labour market
completely so even through in effect they are not working, they are classed as economically inactive
rather than unemployed/
Claimant count of unemployment: Unemployment measured by the number of people registered as
unemployed and claiming unemployment benefits - calculated unemployment by measuring the
number of people receiving benefits (Jobseekers allowance) each month - people claiming JSA must
declare that they are out of work, capable of and actively seeking work during the week in which their
claim is made.
Contribution based JSA: If you have paid two years of national insurance contributions, you can be
paid JSA whatever your income and savings - paid for 6 months.
Income Based JSA: paid to those on low incomes with low savings - will be eligible as long as your
income is not too high.
Employment: people who are either working for firms or other organisations, or are self-employed (
this definition is rather imprecise as it does not account for underemployment or discouraged workers
etc).
Unemployed: people who are economically active but are not in employment - those of working age
who are willing and able to work but cannot find a job despite an active search
Economically inactive: people of working age who are not looking for work for a variety of reasons,
this could be because they are discouraged workers (have previously tried to find employment but are
no longer looking for work)
Workforce: people who are economically active - either in employment or unemployed.
Full employment: a situation in which people who are economically active in the workforce and are
willing and able to work at the going wage rate are able to find employment.
● Means that the economy is making to best use of its labour resources and so it producing the
maximum possible output
● However there will always be some unemployment in society as some people may be
between jobs or engaging in job search
● If the economy were operating very close to full capacity there would be an upwards pressure
on wages and therefore prices - there is a conflict between inflation and reaching full
employment (phillips curve)
● In light of the potential pressure on prices, some economists have argued that full
employment should be regarded as the level of unemployment at which there is no tendency
for inflation to accelerate.
Measuring Unemployment:
Limitation of both measures : does not consider underemployment (when people cannot find the
jobs or which they are qualified for and so take jobs in second-choice occupations - in a UK context
could be where workers are unable to work for as many hours as they would like). There is also the
problem of discouraged workers where the long-term unemployed may leave the labour market
completely so even through in effect they are not working, they are classed as economically inactive
rather than unemployed/
Claimant count of unemployment: Unemployment measured by the number of people registered as
unemployed and claiming unemployment benefits - calculated unemployment by measuring the
number of people receiving benefits (Jobseekers allowance) each month - people claiming JSA must
declare that they are out of work, capable of and actively seeking work during the week in which their
claim is made.
Contribution based JSA: If you have paid two years of national insurance contributions, you can be
paid JSA whatever your income and savings - paid for 6 months.
Income Based JSA: paid to those on low incomes with low savings - will be eligible as long as your
income is not too high.
