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Employment and unemployment (Consequences of unemployment (Opportunity…
Employment and unemployment
Unemployment are people were willing and able to work but cannot find a job
Labour force survey
Quantity is around 40,000 households
Can compare with other countries
Provides measure of employment and unemployment
Study of employment circumstances
Problems with claimant court
Some people who claim JSA do not actively seek work
Some have jobs in a black economy but continue to claim benefits
Self employed workers who are temporarily unemployed tend not to claim
Is the Labour Force survey better
Picks up trends in sectors
Better guide for policy makers
Potential for analysis of data
Accepted to be more accurate
Internationally recognised
Consequences of unemployment
Opportunity income
Firms which produce luxury goods will go out of business
Recession
Lower disposable income leading to a fall in consumption
Firms allocative inefficient
Lower HDI
Less tax revenue
Lower national minimum wage
GDP decreases
Consequences for businesses
Lower profit
Increase in demand for inferior goods
Fall in revenue
Less investment for firms
Lower NMW
Reduced morale
Inferior good firms will have an increase in revenue
Reduced productivity
Luxury good firms will go out of business
Consequences for unemployed
Lower standards of living
Increase in consumption of demerit goods
Increase in mental health problems
Loss of skill
Could be homeless
Relocation
Drawn into crime
Underemployment is when workers cannot find a job that is suitable for their qualifications and experience or who cannot find enough hours to work