4.7 - Employment and unemployment
4.7.1 Definition of employment, unemployment and full employment
Definitions
Employment: Employment is the amount of people in the labour force that is
supplying labour at a given wage rate
Unemployment: Unemployment is the amount of people in the labour force, who are
willing and able to work, but cannot find a job
Unemployment rate: The percentage of the labour force that is actively seeking a
job, but without one.
# 𝑢𝑛𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑
𝑙𝑎𝑏𝑜𝑢𝑟 𝑓𝑜𝑟𝑐𝑒
x 100%
● Rate < 10% = good
Chronic unemployment: When a worker has been unemployed for a very long time
(e.g 2 months)
● The longer a worker is unemployed, the more difficult it is for them to rejoin
the labour market and find a job
Full employment: when unemployment is at its lowest rate
4.7.2 Changing patterns and levels of employment
Changes in the patterns of employment
1) Increase in the proportion of workers employed in tertiary + quaternary
sectors
2) Employment from informal to formal economy
3) Increase in percentage of women in the labour force (due to social attitudes +
education)
4) Change in working hours (full-time + part-time work)
5) Change in employers (public → private sectors)
6) Occupational + geographical mobility
4.7.3 Measurement of unemployment
How do you measure unemployment?
● There are 2 methods
1) Claimant count
2) Labour force surveys
Claimant count
4.7.1 Definition of employment, unemployment and full employment
Definitions
Employment: Employment is the amount of people in the labour force that is
supplying labour at a given wage rate
Unemployment: Unemployment is the amount of people in the labour force, who are
willing and able to work, but cannot find a job
Unemployment rate: The percentage of the labour force that is actively seeking a
job, but without one.
# 𝑢𝑛𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑
𝑙𝑎𝑏𝑜𝑢𝑟 𝑓𝑜𝑟𝑐𝑒
x 100%
● Rate < 10% = good
Chronic unemployment: When a worker has been unemployed for a very long time
(e.g 2 months)
● The longer a worker is unemployed, the more difficult it is for them to rejoin
the labour market and find a job
Full employment: when unemployment is at its lowest rate
4.7.2 Changing patterns and levels of employment
Changes in the patterns of employment
1) Increase in the proportion of workers employed in tertiary + quaternary
sectors
2) Employment from informal to formal economy
3) Increase in percentage of women in the labour force (due to social attitudes +
education)
4) Change in working hours (full-time + part-time work)
5) Change in employers (public → private sectors)
6) Occupational + geographical mobility
4.7.3 Measurement of unemployment
How do you measure unemployment?
● There are 2 methods
1) Claimant count
2) Labour force surveys
Claimant count
