Unemployment 4.7

How is unemployment measured

(Unemployed/Labour Force) X 100

Advantages of hiring full-time employees

Having a stable and consistent workforce reduces the need for constant hiring; they are often more motivated due to having a secure job.

Disadvantages of hiring full-time employees

More expensive than hiring part time, have less flexible work hours, may lead to overstaffing when theres not a need for that many employees.

Advantages of part time employees

Workers may feel more productive, more work flexibility, lower costs, part time contracts.

Disadvantages of part time employees

Employee may miss important meetings because its their day off, hard to promote them, less commitment, create challenges in communicating or working together since they may not be present for everything.

4 causes of unemployment

Cyclical, Seasonal, Structural and Frictional

What is cyclical unemployment?

When workers lose their jobs because of downturns in the business cycle causing demand to decrease.

What is structural unemployment?

When theres mismatches in the skills that employees have and skills that employers require.

What is frictional unemployment?

The time between workers leaving their job and finding a new job.

What is seasonal unemployment?

Some jobs that are only available in specific seasons.

Recession

A significant decline in economic activity lasting for 2 consecutive quarters.