macro unemployment and employment

• What is meant by unemployment?

  People seeking jobs but without one
• Who is included in the Labour Force?

  Those who are economically active and willing to work
• What does involuntary unemployment mean?

  Unemployment due to lack of job availability
• What is the unemployment level?

  The number of unemployed individuals
• What was the UK unemployment level at the end of November 2024?

  1.568 million
• How is the unemployment rate calculated?

  Unemployment Level x 100 / Labour force
• What was the UK unemployment rate at the end of November 2024?

  4.4%
• Why is the unemployment rate useful?

  It allows comparison across time and countries
• What are the key trends in UK unemployment over the last 20 years?

  • Fluctuations in unemployment rates
  • Impact of economic cycles
  • Changes in government policies
  • Effects of global economic conditions
  • Shifts in industry demands
• What is meant by employment?

  People in the Labour Force who have jobs
• What is the macroeconomic policy objective of full employment?

  All factors of production are fully utilized
• What types of unemployment exist?

  Cyclical, frictional, seasonal, structural
• What causes cyclical unemployment?

  Fluctuations in the economic cycle
• What is frictional unemployment?

  Short-term unemployment between jobs
• What is seasonal unemployment?

  Unemployment influenced by the time of year
• What is structural unemployment?

  Long-term unemployment due to economic changes
• What are the consequences of unemployment?

  Lower output, tax revenue, and living standards
• How is employment measured?

  By the number of people in jobs
• What is the full employment level of output?

  Corresponds to the vertical LRAS curve
• What are the positive effects of full employment?

  • Rising confidence
  • Increased capital investment
  • Rising income
  • Higher living standards
  • Higher consumer demand
• What are the negative effects of full employment?

  • Shortages of skilled workers
  • Rising inflation
• What is the Claimant Count measure of unemployment?

  Number of people receiving Jobseeker's allowance
• What are the advantages of the Claimant Count measure?

  Quick and cheap to calculate
• What are the disadvantages of the Claimant Count measure?

  Excludes certain age groups and may miscount
• What is the Labour Force Survey measure of unemployment?

  Quarterly survey of 60,000 households
• What is the ILO definition of unemployment?

  People without work but available for work
• What are the advantages of the Labour Force Survey measure?

  More accurate and internationally recognized
• What are the disadvantages of the Labour Force Survey measure?

  Expensive and time-consuming to collect
• What are the differences between the Labour Force Survey and Claimant Count measures?

  • Accuracy: Labour Force Survey is more accurate
  • Cost: Claimant Count is cheaper
  • Speed: Claimant Count is quicker to calculate
  • International comparison: Labour Force Survey is recognized internationally
• What are the difficulties in accurately measuring unemployment?

  Variability in definitions and reporting methods
• What should be included in an essay evaluating UK unemployment causes and consequences?

  • Define unemployment
  • Apply examples
  • Analyze causes and consequences
  • Evaluate importance and context