Measures of unemployment econ

• What is the claimant count measure?

  A measure of unemployed people claiming unemployment benefits
• What is the aim of the ILO?

  To set labor standards and promote decent work for all
• What does ILO stand for?

  International Labor Organization
• What does LFS stand for?

  Labor Force Survey
• Who is considered unemployed?

  People of working age who are out of work and actively seeking work
• What is under-employment?

  A situation where workers are working fewer hours than they desire
• What is the purpose of the LFS?

  To provide information on the labor market through a standardized survey
• What defines an employed person?

  • Those doing more than 1 hour of paid work a week
  • Temporarily away from work (e.g., on holiday)
  • On a government-supported training scheme
  • Doing a minimum of 15 hours of unpaid work for a family business
• What defines an inactive person?

  • Not employed or unemployed
  • Not seeking employment
  • May include students, caregivers, or those discouraged from applying
• What is the significance of changes in activity levels in the labor force?

  Increases in inactivity decrease the labor force size and productive potential
• What can happen if inactivity decreases without job availability?

  It could result in more people becoming unemployed
• What are the causes of unemployment?

  1. Structural Unemployment

  • Regional unemployment
  • Sectoral unemployment
  • Technological unemployment

  1. Frictional Unemployment
  2. Seasonal Unemployment
  3. Demand Deficiency and Cyclical Unemployment
  4. Real Wage Inflexibility
• What is structural unemployment?

  Long-term unemployment caused by decline in different industries
• What is regional unemployment?

  Low employment levels in certain areas due to industry closures
• What is sectoral unemployment?

  Unemployment in a specific sector experiencing a dramatic fall in employment
• What is frictional unemployment?

  Short-term unemployment due to people moving between jobs
• What is technological unemployment?

  Unemployment caused by improvements in technology replacing jobs
• What is seasonal unemployment?

  Short-term unemployment caused by changes in the seasons
• What is demand deficiency and cyclical unemployment?

  Unemployment due to a general lack of demand for goods and services
• What is real wage inflexibility?

  Unemployment caused by workers demanding wages higher than the equilibrium wage rate
• How does migration affect employment in the UK?

  • Increases jobs due to net inward migration
  • Immigrants often take lower-skilled jobs
  • Creates jobs through the circular flow of income
  • Can lead to lower wages for low-skilled jobs
• What is the impact of increased net inward migration on wages?

  It tends to lead to lower wages for lower-paid, low-skilled jobs
• How does migration affect competition in the job market?

  It increases competition for jobs, particularly for low-skilled workers
• What are the impacts of unemployment on firms?

  • Decrease in demand for goods
  • Loss of skills in long-term unemployed
  • Ability to offer low wages due to job scarcity
• What are the impacts of unemployment on workers?

  • Loss of income and decline in living standards
  • Stigma and stress from unemployment
  • Long-term unemployed face skill loss
  • Job security decreases for those employed
• What are the impacts of unemployment on consumers?

  • Loss of choice in shopping areas
  • Decrease in spending power for unemployed consumers
  • Potential for lower prices from firms to increase demand
• What are the impacts of unemployment on the government?

  • Fall in tax revenues and increased welfare spending
  • Potential increase in budget deficit
  • Need to raise taxes or cut public spending
• What are the societal impacts of rising unemployment?

  • Linked to social deprivation and crime
  • Fall in demand for local goods and services
  • Loss of potential national output and inefficient resource use
• What is the relationship between unemployment and social costs?

  Unemployment leads to social costs like violence and crime
• How does unemployment affect national output?

  It results in a loss of potential national output