Employment and unemployment

KEY WORDS
1. Employment: the number of people in paid work
  1. Employees: workers employed by another individual or firm
  2. Self employed: workers who work on their own account and are not employees
  3. Part time workers
  4. Full time workers
  5. Underemployed: those who would work more hours if available or are in jobs which are below/ don't reflect their skill level
2. Unemployment: The number of people without a job but actively seeking paid work
  1. Inactive: the number of those not in work nor seeking employment
  2. Hidden unemployed
  3. Gov. targets women, older workers and those with a disability to decrease unemployment
3. Labour force/ active population: those in work or actively seeking work
  1. Population of working age: the total number of people aged between the statutory school leaving age and the state retirement age
    1. 16 - 65
4. 4 Key Ratios
  1. employment rate: number of those in work divided by the population of working age
  2. Unemployment rate: number of those not in work but seeking work divided by the labour force
  3. Activity/ participation rate: is the number of those employed or unemployed divided by the population of working age
  4. Inactivity rate: number of those not in work and unemployed divided by the population of working age
CAUSES OF UNEMPLOYMENT
1. Frictional unemployment
2. Seasonal unemployment
3. Structural unemployment
4. Real wage unemployment
5. Cyclical or demand-deficient unemployment
MIGRATION
1. immigrants are more likely to be employed and less likely to claim benefits as they migrate for work
2. Circular flow of income; spending of workers creates further jobs, total employment increases without an increase in unemployment
3. inwards migration depresses wages because supply of labour is increased reducing the equilibrium price of labour, the wage rate
4. Most affected; uk workers with few skills, competing with motivated and willing to work for less foreign migrants
SKILLS
1. Gov. provide training, but its costly
2. Problem occurs when skills don't match jobs
3. The longer in unemployment the harder to get a job - less skills, example technology
COSTS OF UNEMPLOYMENT
1. To the unemployed and their dependants
  1. loss of income
  2. feeling of being degraded: social problems; stress, mental instability
2. Costs to local communities
  1. increased crime, violence, vandalism
  2. Areas of high unemployment become run down - shops out of business, households no spare money to look after their properties
3. Costs to the government
  1. pay out increased benefits
  2. loses revenue because these workers would have paid tax
    1. Income tax
  3. Costs of helping those unemployed; training
  4. taz payers pay more; for increased gov spending and to make up for taxes not being paid by those unemployed
4. Costs to the economy as a whole
  1. loss of output which those unemployed could have produced
    1. used for consumption
    2. for exports
  2. social cost; increase violence and depression
5. Costs to consumers
  1. less disposable income, spend less
6. Costs to firms
  1. loss of demand
  2. long-term unemployment reduces the pool of skilled workers that a firm could hire
UNEMPLOYMENT MEASURES
1. CLAIMANT COUNT
  1. measures by counting the number of people claiming benefits for being unemployed
  2. can not be compared with other countries
  3. not all unemployed claim benefits
2. INTERNATIONAL LABOUR ORGANISATION
DIAGRAMS ILLUSTRATING UNEMPLOYMENT

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	Created by Keanna Ki almost 9 years ago