Ch19 Unemployment

Front

What is unemployment?

Back

Unemployment occurs when people of working age who are willing and able to work cannot get a job.

Front

What does it mean to be economically active?

Back

A person is economically active when part of the labour force. Someone who is economically inactive is not part of the labour force.

Front

How is unemployment measured?

Back

Unemployment is measured in two ways: those who register as unemployed and those who are classed as unemployed in a sample survey of people of working age.

Front

What is the difference between the level and rate of unemployment?

Back

The level of unemployment is the total number of people who are unemployed. The rate of unemployment is the numbers who are unemployed as a percentage of the labour force.

Front

What is frictional unemployment?

Back

Frictional unemployment is temporary. An example is when someone is unemployed for a short period while changing from one job to another job.

Front

What is structural unemployment?

Back

Structural unemployment occurs when there are substantial changes to the economy. An example is when a coal miner becomes unemployed due to government policy to promote cleaner energy.

Front

What is cyclical unemployment?

Back

Cyclical unemployment is due to a lack of aggregate demand in the economy. An example is when a government reduces its spending and increases taxation in order to prioritise the need to combat a rising rate of inflation.

Front

What is seasonal unemployment?

Back

Seasonal unemployment comes about at a particular time of year when demand for a good or service falls away. An example is in tourism where hotels and other facilities are open and employ workers for only a few months during the peak tourist season.

Front

What is technological unemployment?

Back

Technological unemployment is when people are out of work when their jobs can be done more effectively by robots or other labour-saving devices. An example is where a ticket clerk at a railway station is replaced by an automatic ticket machine.

Front

What are some causes of rural unemployment?

Back

Causes of rural employment may include: the seasonal nature of agricultural production means that some workers are seasonally unemployed for parts of the year. The increasing use of mechanisation in agriculture means that less workers are required. These workers become technologically unemployed.