UNEMPLOYMENT

Question 1

WHAT IS UNEMPLOYMENT?

Answer 1

THOSE WHO R WILLING AND ABLE TO WORK AT THE GOING WAGE RATE BUT DON’T HAVE A JOB.

Question 2

WHAT R THE 2 WAYS OF MEASURING UNEMPLOYMENT?

Answer 2

1. CLAIMANT COUNT
2. LFS/ILO UNEMPLOYMENT

Question 3

WHY IS THERE A DIFFERENCE BETWEEN LFS AND THE CLAIMANT COUNT?

Answer 3

1. SOME PEOPLE WHO WANT TO WORK R INELIGIBLE FOR BENEFITS DUE TO HIGH SAVINGS OR A PARTNER WITH HIGH INCOME
2. SOME PEOPLE DON’T REGISTER FOR BENEFITS DUE TO STIGMA OF RELYING ON THE STATE FOR HANDOUTS
3. LFS SURVEY COUNTS 16-17 YR OLDS BUT CLAIMANT COUNT STARTS AT 18

Question 4

R THERE ANY GROUPS NOT INCLUDED WITHIN EITHER OF THESE UNEMPLOYMENT STATISTICS?

Answer 4

1. THOSE WHO R ECONOMICALLY INACTIVE E.G DISABLED/CHILDREN/RETIRED
2. THOSE WHO R VOLUNTARILY UNEMPLOYED
3. WORKERS NOT INCLUDED IN OFFICIAL STATS E..G ILLEGAL IMIGRANTS, HOMELESS, BLACK MARKET WORKERS ETC

Question 5

WHAT DOES IT MEAN TO BE VOLUNTARILY UNEMPLOYED?

Answer 5

THOSE WHO R NOT WILLING TO WORK AT THE GOING WAGE RATE.

Question 6

WHY DOES THE UK LABOUR MARKET TYPICALLY HAVE THOUSANDS OF JOB VACANCIES BUT ALSO UNEMPLOYMENT?

Answer 6

SKILLS MISMATCH

Question 7

WHAT IS UNDEREMPLOYMENT?

Answer 7

WHEN PEOPLE R WILLING TO WORK MORE OR R UNDER-UTILISED IN TERMS OF ABILITY.

Question 8

WHY IS THE GOVT PARTICULARLY CONCERNED ABOUT YOUTH AND LONG TERM UNEMPLOYMENT?

Answer 8

1. MAY BECOME DISCOURAGED WORKERS AND NEVER FIND WORK BECOMING A LONG TERM COST
2. IF UNI AND SCHOOL GRADUATES CAN’T FIND WORK, THE MONEY SPENT TRAINING THEM WAS WASTED AND THEIR SKILLS WILL DEPRECIATE

Question 9

WHY HAVE WAGES IN THE UK STAYED LOW EVEN THOUGH UNEMPLOYMENT IS FALLING?

Answer 9

WORKERS ACCEPT LOWER REAL WAGES TO AVOID UNEMPLOYMENT.

Question 10

WHAT IS THE GOVT TARGET FOR UNEMPLOYMENT?

Answer 10

FULL EMPLOYMENT

Question 11

WHAT CAN FULL EMPLOYMENT BE DEFINED AS?

Answer 11

1. EVERY1 HAS A JOB
2. LABOUR MARKET IN EQUILIBIUM
3. NUMBER OF VACANCIES MATCH THE NUMBER OF PEOPLE WITHOUT A JOB

Question 12

WHAT IS REAL WAGE UNEMPLOYMENT?

Answer 12

WHEN WAGES R DELIBERATELY MAINTAINED ABOVE EQUILIBRIUM LEVEL CAUSING AN EXCESS SUPPLY OF LABOUR.

Question 13

WHAT R EXAMPLES OF REAL WAGE UNEMPLOYMENT?

Answer 13

1. INCREASES IN MIN WAGE
2. TRADE UNION POWER

Question 14

WHAT IS CYCLICAL UNEMPLOYMENT?

Answer 14

WHEN A DOWNTURN IN THE ECONOMIC CYCLE LOWERS AD REDUCING DERIVED DEMAND FOR WORKERS.

Question 15

WHAT IS STRUCTURAL UNEMPLOYMENT?

Answer 15

OCCURS WHEN THERE’S A CHANGE IN THE STRUCTURE OF THE ECONOMY

Question 16

WHAT IS AN EXAMPLE OF STRUCTURAL UNEMPLOYMENT?

Answer 16

UK USED TO DO A LOT OF MANUFACTURING BUT IS NOW FOCUSED ON SERVICES SO PEOPLE WHO USED TO WORK IN FACTORIES HAVE NOW LOST THEIR JOBS.

Question 17

WHAT IS SEASONAL UNEMPLOYMENT?

Answer 17

WHEN WORKERS R ONLY REQUIRED ON A SEASONAL BASIS.

Question 18

WHAT R EXAMPLES OF SEASONAL UNEMPLOYMENT?

Answer 18

1. ICE CREAM VAN WORKERS
2. WORKERS IN TOURIST INDUSTRY
3. CONSTRUCTION WORKERS

Question 19

WHAT IS FRICTIONAL UNEMPLOYMENT?

Answer 19

TRANSITIONAL UNEMPLOYMENT DUE TO PEOPLE MOVING BETWEEN JOBS.

Question 20

HOW DOES IMMIGRATION AFFECT THE UK ECONOMY?

Answer 20

1. INCREASE LRAS AS THERE IS A GREATER QUANTITY OF LABOUR
2. INCEASE AD THROUGH WAGE SPENDING LEADING TO A POSITIVE MULTIPLIER EFFECT AND JOB CREATION

Question 21

WHAT R THE ADVANTAGES OF IMMIGRATION?

Answer 21

1. CAN MEET AREAS WHERE THERE R SHORTAGES E.G TEACHERS/NURSES
2. HELP SOLVE THE PROBLEM OF AN AGIING POPULATION
3. LEADS TO LOWER COSTS FOR FIRMS KEEPING INFLATION LOW

Question 22

WHAT R THE DISADVANTAGES OF IMMIGRATION?

Answer 22

INCREASES COMPETITION LOWERING WAGES

Question 23

WHAT R THE COSTS OF UNEMPLOYMENT FOR FIRMS?

Answer 23

1. LOWER DEMAND
2. NEGATIVE MULTIPLIER EFFECT

Question 24

WHAT R THE COSTS OF UNEMPLOYMENT TO WORKERS?

Answer 24

1. LOWER DISPOSABLE INCOME
2. DE-SKILLING
   (HYSTERISIS)
3. HOMELESSNESS
4. MENTAL HEALTH ISSUES

Question 25

WHAT R THE COSTS OF UNEMPLOYMENT TO THE GOVT?

Answer 25

1. LESS TAX REV 2. HIGHER WELFARE SPENDING 3. DEPRECIATION OF HUMAN CAPITAL( ESPECIALLY GRADUATE UNEMPLOYMENT) 4. INCREASED BUDGET DEFICIT

Question 26

WHAT R THE COSTS OF UNEMPLOYMENT TO SOCIETY?

Answer 26

1. WIDESPREAD DEPRIVATION 2. CRIME RISE 3. INEQUALITY RISE

Question 27

WHAT DOES THE SR PHILLIPS CURVE ARTICULATE?

Answer 27

THERE IS AN INVERSE RELATIONSHIP BETWEEN INFLATION AND UNEMPLOYMENT IN THE SR

Question 28

WHY MAY UNDEREMPLOYMENT EXIST?

Answer 28

1. ZERO HOUR CONTRACTS 2. LACK OF DEMAND FOR LABOUR IN THE MARKET.

Question 29

WHAT IS THE CLAIMANT COUNT?

Answer 29

NUMBER OF PEOPLE CLAIMING UNEMPLOYMENT BENEFITS/JOBSEEKERS ALLOWANCE.

Question 30

HOW IS ILO UNEMPLOYMENT MEASURED?

Answer 30

USING THE LABOUR FORCE SURVEY.

Question 31

HOW DOES THE LFS DEFINE UNEMPLOYMENT?

Answer 31

SOME1 WHO IS WITHOUT A JOB BUT WANTS A JOB AND HAS BEEN ACTIVELY LOOKING IN THE LAST 4 WEEKS.

Question 32

WHAT IS NET MIGRATION?

Answer 32

TOTAL IMMIGRATION - TOTAL EMIGRATION

Question 33

WHAT DOES NET MIGRATION DO TO UNMPLOYMENT?

Answer 33

EXISTING LABOUR FORCE FIND IT HARDER TO FIND JOBS DUE TO INCREASED SUPPLY OF LABOUR, INCREASING UNEMPLOYMENT. MISMATCH OF SKILLS CREATES STRUCTURAL UNEMPLOYMENT DECREASED CYCLICAL UNEMPLOYMENT AS AD IN ECONOMY INCREASES DUE TO MORE CONSUMPTION FROM MIGRANTS - DEMAND FOR LABOUR INCREASES.

Question 34

WHY IS THE TARGET FOR UNEMPLOYMENT NOT 0% ?