unemployment 2.1

Unemployment

Number of people without work and have not been seeking to find work

Underemployment

Those who have a job but their labour is not being used to fuel productive potential

Employment and unemployment rate

Extent at which labour services are being used, unemployment- share of labour force without work

Unemployment measures

Clamitant court- measure of people currently claiming unemployment benefits

Uk labour force survey- questions about personal circumstances and activity in labour market

Structual unemployment

Mismatch of skills of workforce and demand of employers

Frictional unemployment

Temporary between jobs

Seasonal unemployment

Due to employment being required at particular times of year

Cyclical unemployment

Fluctuates with the trbusiness cycle- downturn or recession

Real wage unemployment

The real wage is set above equilibrium, leading to excess labour supply

Effect on individuals

Less of skills, losss of income, lower living standards

Effect on firms

Easier to recruit new employees, less consumption, so decrease in revenue and profits