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Summary AS Notes Economics Unit 2 Employment and Unemployment
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AS Notes Economics Unit 2 Employment and Unemployment Revision Notes
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Voorbeeld van de inhoud
Employmenttotal number of people with a job and includes employees and self employed
the number of people at job is influenced by
Size of domestic population available for work Ht 66year olds
excluding full time students people in prison
Participation rate of a certain group at work such as number of women
aged between 30 45 or the number of people aged over 661
Net migration Economic
growth9 life
expectancy
Unemployment 3.8 in Uk
Total number of people not working in paid employment but are constantly
seeking job Number unemployed
rateof unemployment
Total number of
active workforce employed 1 unemployed
Economically inactive
full time university students
Looks for family members
Discouraged workers not looking for work or not found for a long time
ex prisoners
Measurement
Claimant Count CC
people claim IS A Tob seeker allowance ex 70 a week you have to prove
that you are looking for a job and made contribution to natural insurance
Benefits
Easier to calculate Quick1Accurate picture
Cheaper to calculate
Problems
Does not count people who are looking for a job that do not claim benefit
married to a rich partner
Some are to claim benefits stigma 9 claiming benefits
embarrassed
Some work for few days and still claim benefits fraud
Ignores discouraged workers who do not seek job
Labour Force Survey LFS
more important measure and uses International Labour Organisation ILO standard
Quatevly survey oncein 3months of 40,000 households and a person is
counted unemployed it
Actively seeking for a job during the last 4 weeks and available to
start in 2 weeks
Out of work found a job and waiting to start in next 2 weeks
Benefits
, Benet s
More accurate measure of unemployment includes people noteligible for JobSeekerAllowan
Can be used to compare with other countries
Problems
People doing the survey may not be representative of the whole population
Ignores discouraged workers
Types of unemployment
Seasonal unemployment
workers may loose their jobs at certain times of the year when demand
for their goods or services decrease
ex icecream sellers in winter
Cyclical unemployment demand deficient
whenthe economyslows down or is in a recession jobs are lost AD
general lack of demand of goods and services within the country
Keynesian government is responsible to increase it's spending during recession
to boost aggregate demand ex house prices fall
Frictional unemployment
Workers moving between jobs so need time to move into another
job
when workers chose to leave their previous job Shortterm level of unemployment
Structural unemployment
Longterm decline in demand in a industry leading to reduction in employmen
ex coal mining 1 difficult for miners to get a job in new industry
training required
causes
Geographical immobilities Occupational immobilities
this occurs when workers are unable when industry declines it is hard
to move from areas of high unemployment for workers to find jobs as
to areas with labour shortages they may lack skills
due to buying1renting a house
Government Intervention
housing subsidies Education 1
training
Infrastructure spending time lag
bringthe work to workers opportunity cost
could be low quality
Technological unemployment
robots
workers are replaced by machines when machines are more efficient
and have higher rate of returns than labour
Voluntary unemployment
long search period looking for a new job Most ideal job
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