28167448
Employment and unemployment
- KEY WORDS
- Employment: the number of people in paid work
- Employees: workers
employed by another
individual or firm
- Self employed: workers who
work on their own account
and are not employees
- Part time workers
- Full time workers
- Underemployed: those who would work more hours
if available or are in jobs which are below/ don't
reflect their skill level
- Employees: workers
employed by another
individual or firm
- Unemployment: The number of people
without a job but actively seeking paid work
- Inactive: the number of those not in work nor
seeking employment
- Hidden unemployed
- Gov. targets women, older
workers and those with a disability
to decrease unemployment
- Inactive: the number of those not in work nor
seeking employment
- Labour force/ active population:
those in work or actively seeking
work
- Population of working age: the total number of
people aged between the statutory school
leaving age and the state retirement age
- 16 - 65
- 16 - 65
- Population of working age: the total number of
people aged between the statutory school
leaving age and the state retirement age
- 4 Key Ratios
- employment rate: number of
those in work divided by the
population of working age
- Unemployment rate: number of
those not in work but seeking
work divided by the labour force
- Activity/ participation rate: is the number
of those employed or unemployed divided
by the population of working age
- Inactivity rate: number of those not in work and
unemployed divided by the population of working
age
- employment rate: number of
those in work divided by the
population of working age
- Employment: the number of people in paid work
- CAUSES OF UNEMPLOYMENT
- Frictional unemployment
- Seasonal unemployment
- Structural unemployment
- Real wage unemployment
- Cyclical or demand-deficient
unemployment
- Frictional unemployment
- MIGRATION
- immigrants are more likely to
be employed and less likely to
claim benefits as they migrate
for work
- Circular flow of income;
spending of workers creates
further jobs, total
employment increases
without an increase in
unemployment
- inwards migration depresses
wages because supply of
labour is increased reducing
the equilibrium price of
labour, the wage rate
- Most affected; uk workers with few skills,
competing with motivated and willing to work
for less foreign migrants
- immigrants are more likely to
be employed and less likely to
claim benefits as they migrate
for work
- SKILLS
- Gov. provide training, but its costly
- Problem occurs when skills don't match jobs
- The longer in unemployment the harder to get a job - less
skills, example technology
- Gov. provide training, but its costly
- COSTS OF UNEMPLOYMENT
- To the unemployed and their dependants
- loss of income
- feeling of being degraded: social problems; stress,
mental instability
- loss of income
- Costs to local communities
- increased crime, violence, vandalism
- Areas of high unemployment become run
down - shops out of business, households no
spare money to look after their properties
- increased crime, violence, vandalism
- Costs to the government
- pay out
increased
benefits
- loses revenue because these
workers would have paid tax
- Income tax
- Income tax
- Costs of helping those
unemployed; training
- taz payers pay
more; for increased
gov spending and to
make up for taxes
not being paid by
those unemployed
- pay out
increased
benefits
- Costs to the economy as a whole
- loss of output which
those unemployed
could have produced
- used for consumption
- for exports
- used for consumption
- social cost; increase
violence and
depression
- loss of output which
those unemployed
could have produced
- Costs to consumers
- less disposable income, spend less
- less disposable income, spend less
- Costs to firms
- loss of demand
- long-term unemployment
reduces the pool of skilled
workers that a firm could hire
- loss of demand
- To the unemployed and their dependants
- UNEMPLOYMENT MEASURES
- CLAIMANT COUNT
- measures by counting the number of people
claiming benefits for being unemployed
- can not be compared with
other countries
- not all unemployed claim benefits
- measures by counting the number of people
claiming benefits for being unemployed
- INTERNATIONAL LABOUR ORGANISATION
- CLAIMANT COUNT
- DIAGRAMS ILLUSTRATING UNEMPLOYMENT
Media attachments
Want to create your own Mind Maps for free with GoConqr? Learn more.