Economics - Unemployment

2.4 Level 2 Internal

census

A survey covering a wide range of topics completed by all New Zealanders over the age of 15 every 5 years

cyclical unemployment

Unemployment due to the action of trade/business patterns, falling GDP (recession) requires fewer workers

Labour market

Where employees suppl ylabour and employers demand labour

Derived demand

Where the demand for a good or service is due to what the good or service can produce

frictional unemployment

unemployment due to people who are between jobs (including school leavers) or in seasonal work

full employment

When all resources (eg labour) are used to their potential

household labour force survey

A survey of households to determine the unemployment (HLFS) level for the country

Involuntary unemployment

people who are willing to work but can’t find a job at the current wage

Labour force

People between the age of 16 and 54 that are willing and able to work

Productionn possibility curve

Diagram of the output combinations for a firm or country, when resources are employed to their potential

real wages

Wage rate allowing for inflation; the purchasing power of wages

redundancy

The payment to workers when they are no longer required

(Statutory) Minimum wage

The lowest amount employers are allowed to pay by law, as a protection for employees

Structural unemployment

Job losses due to the decline of a firm/industry

Unemployment

when people who are seeking work can’t find it

Voluntary unemployment

People who are unwilling to work at the current wage

restructuring

Changing the ‘shape of a company or industry- usually involves staff cuts to promote productivity and profitability