Unemployment

• Unemployment: Refers to people who do not have a job, are looking for work, and are able to start working.

  • Employed: Those who have any work, whether it is paid, self-employment, or unpaid work in a family business.

• Out of Labour Force: People who are not working and not looking for work, such as students, retirees, or homemakers.

Labour Statistics

• Labour Force: All the people who are either working or looking for work.

• Unemployment Rate:

  • Calculated by the formula:
    [Unemployment Rate = (Number of Unemployed / Labour Force) x 100]

• Census Unemployment Rate:

  • Percentage of unemployed people looking for work compared to the total population aged 15 and over.

Types of Unemployment

• Frictional Unemployment: Short-term joblessness while switching between jobs.

• Structural Unemployment: Happens when skills do not match job openings or when certain jobs are lost.

• Cyclical Unemployment: Linked to economic conditions, rises during recessions, and falls when the economy improves.

Natural Rate of Unemployment

• Natural Rate: The normal level of unemployment in a healthy economy, which mainly involves frictional and structural unemployment.

• Cyclical Unemployment: Represents the difference from the natural rate caused by economic slowdowns.

Key Statistics on Unemployment in Ireland

• April 2022 Census:

  • Total unemployment rate: 8% (a decrease from 19% in 2011).

  • Youth unemployment (ages 15-24): Highest at 16%.

  • Young males previously at 45% unemployment now at 17%, and females from 32% to 15%.

• Q4 2024 Survey:

  • Employment rate: 74.3%

  • Unemployment rate: 4.0%

  • Total labour force: 2,892,500.

Impact of Policies on Unemployment

• Public Policies: Programs that help with job training and finding jobs can lower unemployment.

• Minimum Wage Laws: These can cause some unemployment by setting wages higher than what some businesses can afford.

• Union Influence: Unions may negotiate higher wages, which can increase labor supply but reduce demand for jobs.

Discouraged Workers

• Discouraged Workers: Individuals who want to work but have stopped searching for a job. They are not counted in the official unemployment rates, which can make unemployment seem lower than it is.

Job Search Dynamics

• Importance of Job Search: Job seekers can experience temporary unemployment while looking for the right job.

• Government Support: Programs that assist unemployed people can help them find new jobs quicker, which can lower overall unemployment.

Efficiency Wages Theory

• Efficiency Wages: The idea that paying higher wages can lead to better productivity, better worker health, and lower turnover, which may help explain some structural unemployment.

Conclusion

• Understanding Unemployment: Involves looking at various types of unemployment, statistical measures, and how policies and society affect the job market.