low unemployment

employment

when people who are willing and able to work can find a job

unemployment

when people who are willing and able to work can’t find a job

claimant court

method of measuring unemployment by using the number of people who claim unemployment related benefits

level of unemployment

number of unemployed people

unemployment rate

number of unemployed / workforce x100

unemployment types

cyclical , frictional , seasonal , structural

cyclical unemployment

unemployment due to the economy being in a recession meaning firms hire less

frictional unemployment

unemployment when searching for a job or moving between jobs

seasonal unemployment

unemployment due to a decrease in demand at certain times of the year

structural unemployment

unemployment due to industry decline

what can cause labour immobility

geographical immobility, occupational immobility, technology , real wage increase

how can real wage increasing cause labour immobility

when real wage is higher than equilibrium wage, there is excess supply for labour and low demand

what is geographical immobility

workers find it difficult to move between regions

occupational immobility

workers lack skills to switch jobs

how can technology cause labour immobility

technology replaces labour decreasing demand

benefits of unemployment

easier recruiting for firms , lower costs for firms as workers have to accept low wages , lower Inflation

costs of unemployment for individuals

tax increases to fund benefits, lower standards of living

costs of unemployment for gov

budget deficit, lower output than potential