Macro-economics unemployment definitions

• What is frictional unemployment?

  Unemployment between jobs (short term)
• What causes seasonal unemployment?

  Changes in seasonal demand
• What is structural unemployment?

  Changes in the structure of the economy which leads to skills of some workers becoming unnecessary
• What is cyclical unemployment?

  Unemployment created by a recession
• What does claimant count refer to?

  Total number of people claiming Jobseeker’s Allowance
• What is voluntary unemployment?

  When a worker is unwilling to accept work at equilibrium work rate
• What is involuntary unemployment?

  When a worker is willing to accept work at equilibrium work rate but no work is available
• What is classical or real wage unemployment?

  When wages are above the market clearing wage rate
• What is the market clearing wage rate?

  The wage rate at which the labour supply and labour demand are at equilibrium
• What does marginal revenue product measure?

  Change in total revenue as a result of selling the output produces by an extra worker
• Labour force survey

  A survey sent to UK households to establish changes in unemployment