Economics Unit 2 AOS2- The changing labour market FLASHCARDS

Relevant measures

Data and statistics used to compare a make decisions about economic conditions.

Examples of Relevant measures

-unemployment rate

-number of migrants imported (migration rate)

-wage rate

Underemployment

when people have a job but are not working as much as they would like or there skills are being underused.

what are some measures of the labor market

Labor force participation rate

employment rate

unemployment rate

underemployment rate

hours worked

define labor force participation rate

percentage of people who are working or looking for work

define employment rate

percentage of people in the labor force who have jobs

define unemployment rate

percentage of people in the labor force who don't have a job and are looking for a job

define underemployment rate

percentage of people who work but want more hours or a better use of their skills

Consequences of unemployment- impact on individuals

decrease in wellbeing

drop in income

decrease in living standards

Consequences of unemployment- impact on society

increased criminal activity

gap between high and low income earners widen

Consequences of unemployment- impact on business, economy and government

-larger pool of workers to choose from, may result in hiring someone with high skills for a low price

-economy suffers as AD+ c+I+g+c=(x-m) decreases

-increased taxes and decreased gov spending

-reduced disposable income

seasonal unemployment

temporary job loss that occurs when there is reduced demand for labor.

EXAMPLE: life guards are only needed during the summer months

Cyclical unemployment

due to a upturn or downturn the economy unemployment is impacted which results in a increase or decrease in jobs.

EXAMPLE: JOBS DECREASED DURING COVID AS A RESULT OF THE ECONOMY

structural unemployment

long term job loss caused by skills not being needed anymore

EXAMPLE: FORD FACTORY CLOSED DOWN RESULTING IN LOSTED JOBS

Frictional unemployment

temporary job loss between the time period of someone changing jobs

Hidden unemployment

unemployment that includes people not counted in the traditional unemployment categories

Long-term unemployment

some who's been out of a job for 12+ months and is looking for a job

hardcore unemployment

people unemployed because if characteristics like disabilities or illnesses

explain the supply of labour graph

when supply for labour is high, which means there is more people willing to work there is less demand for labour which means the business is less willing to hire.

When supply for labour is low, which means there is less people willing to work, demand is higher because the business want to hire more workers.

Impact of migration on the labour market

migration affects the labour marker as more people are moving to one area which creates more supply for employees. This allows businesses to employe people at a Lower price

How does technology affect the labour market

technology makes completing tasks faster and help people work from home. It can also cause job loss and tech can remove the need for specific jobs.

Why does the demand in labour increase

demand is labour increases because of an increased demand in goods and services wanted, which results in additional labour

Why does the demand in labour decrease

demand in labour decreases because of a higher wage rate, which make hiring people more expensive. Also If demand for goods and services is low, there is less need for labour.

Impact of immigration on labour

immigration causes an increased labour supply, increased economic growth, more diverse skills, creates competitions and can affect wages

Tight labour market

when demand for workers is greater than the supply, resulting in low unemployment, higher wages and increased competition

How can the government correct tight labour

increase immigration, invest in education and training, offer incentives for unemployed people and offer flexibility

benefits of migration on the labour market

brings in a wider range of employees with knowledge and skills