Unemployment

Labour Market

Supply and demand for labour

Unemployment

People who are not in a paid job but are willing and able to work, therefore, actively seeking a job.

Underemployment

People who are in a paid job, but willing and able to work more.

Underutilisation Rate

Underemployment and unemployment combined - The economy is not maximising resources (labour)

Full Employment

Everyone who is willing and able to work is able to find a job (cyclical unemployment = 0%)

Natural Rate of Employment

Consists of frictional and structural unemployment - that are perceived as natural

NAIRU

Non accelerating rate of inflation - the point after which the rate of inflation rises beyond acceptable levels

Labour Force

The working population who are of age and willing and able to work - both employed and unemployed.

Participation Rate

The percentage of the working age population who are in the labour force.

Cyclical Unemployment

caused by fluctuations in the business cycle or economic cycle

Seasonal Unemployment

Caused by changes in seasons influencing the need for certain roles

Structural Unemployment

Caused by a mismatch of skills between the labour force and businesses

Frictional Unemployment

the unemployment which exists in any economy due to people being in the process of moving from one job to another.