a) Unemployment

b) the distinction between unemployment and under-employment

f) the effects of unemployment on consumers, firms, workers, the government, and society

unemployment = the state of not working but actively seeking work

underemployment = the state of working either

• less hours than desired

• a job that requires lower skills than the worker possesses

(un)employment rate = ( number of (un)employed people / labour force ) × 100

unemployment rate → does not include inactivity

• inactivity = the state of being willing and able to work, yet not seeking employment

inactivity rate = ( number of inactive people / working age population ) × 100

labour force = unemployed + employed

non-labour force = people unwilling and unable to work

labour force participation rate = ( labour force / population ) × 100

effects of unemployment on society

• increased crime rate

• anti-social behaviour/mental instability

• family breakdown

• homelessness