UNEMPLOYMENT 8.1 booklet 2.1.3

• What is the definition of unemployment?

  The number of people of working age without a job, who have been actively seeking work within the last 4 weeks and are available to start work within the next 2 weeks.
• What is the definition of employment?

  The number of working-age people in work
• What does ILO stand for?

  International Labour Organisation
• What is the purpose of the ILO?

  To set labour standards, develop policies and devise programmes to promote decent work for all women and men. (It also promotes employment, human rights and social justice)
• What does LFS stand for?

  Labour Force Survey
• What is the LFS used for?

  It is an internationally standardised survey to provide information on the UK labour market
• What is the Claimant Count measure?

  A measure of unemployment, counting those that are unemployed claiming benefits (such as JSA)
• What is the population of working age in the UK?


  People aged 16-64
• How is the Economically Active Rate calculated?

  [(Employed + Unemployed) ÷ Working age population] x 100
• How is the Economic Inactivity Rate calculated?

  [(Not in work and not looking ÷ Working age population] x 100
• How is the Employment Rate calculated?

  [(Total employed ÷ Working age population] x 100
• How is the Unemployment Rate calculated?

  [Total unemployed ÷ (Unemployed + Employed)] x 100
• What is underemployment?


  Those who are in paid work with fewer hours than desired, under-utilised in terms of their skill level.

  • skilled people working part time when they want to work full time
  • skilled people working fewer hours than they would prefer to
  • skilled people working in low paid jobs
• What is hidden unemployment?


  People not actively seeking work but will accept a job if offered or the underemployed. These figures are not included in the headline unemployment rate.
• What is a full-time job defined as?

  Working over 25 hours a week
• What is the difference between economically active and inactive individuals?

  Active are of working age and either actively seeking work or in work; inactive are of working age but not actively seeking work (not willing or able to work)
• What are the two ways of expressing unemployment?

  Absolute numbers and percentage
• What are the two measures of unemployment?

  Claimant Count and ILO Labour Force Survey
• What is a key difference between the Claimant Count and ILO measures?

  Claimant Count is UK only; ILO is international
• What is a benefit of ILO methodology?

  Enables direct international comparisons instead of each country using their own separate measures
• What is a consequence of youth unemployment growth?

  Increased economic disparity among age groups
• What is meant by the 'hidden economy'?

  Workers not recorded and possibly exploited
• What is a criticism of reductions in unemployment?

  People may take low-paid, part-time jobs
• What is the definition of underemployment?

  Working fewer hours than desired or under-utilised
• What are some consequences of unemployment?

  Poverty, crime, and homelessness may increase
• What are some consequences of underemployment?

  Low productivity, lack of motivation, lack of training, difficulty getting promotion and experience, outdated skill.

  Affects job growth, business growth, career growth, emotional health and poverty levels.
• What does overemployment mean?

  Working full-time but preferring part-time
• What are the differences between unemployment and underemployment?

  • Unemployment: Actively seeking work, out of work
  • Underemployment: Working fewer hours than desired or in low-skilled jobs
• What are the consequences of unemployment and underemployment?

  Unemployment:

  • Poverty
  • Crime
  • Homelessness

  
  

  Underemployment:

  • Low productivity
  • Lack of motivation
  • Difficulty in promotion
• What is a common issue for skilled workers in low-paying jobs?

  They may be underemployed.
• What is an example of skilled workers in low-skilled jobs?

  Baristas with degrees in science.
• What are the consequences of underemployment?

  • Possible impact on crime
  • Increased consumption of harmful goods
  • Poverty
  • Homelessness
  • Low productivity per worker
  • Low motivation
  • Lack of training
  • Low consumption and demand
  • Difficulty of getting promotion and experience
• What does it mean to be overemployed?

  Working full-time but preferring part-time.
• How many people were in part-time employment in 1990?

  6,000,000 people.
• How many people were in part-time employment in 2018?

  8,600,000 people.
• Some workers want more hours at the same rate of pay. What type of job are these type of underemployed workers in?
• What economic conditions can lead to underemployment?

  Recession, supply of labour being greater than demand for labour, redundancies (due to business bankruptcies), and technological change.
• How does technological change contribute to underemployment?

  It replaces jobs with technology, displacing workers.
• What are the effects of underemployment?

  • Affects job growth
  • Increases poverty levels
  • Impacts business growth
  • Limits career growth
  • Harms emotional health of workers
• What is the definition of employment?

  People of working age who are in work.