Please enable JavaScript.
Coggle requires JavaScript to display documents.
Unemployment - Coggle Diagram
Unemployment
Types of unemployment
Cyclical Unemployment
Caused by lack of demand of goods & service during economic slowdown
Seasonal Unemployment
Caused by routine changes in the demand for certain kinds of labour
Structural Unemployment
Caused by mismatch of skills of worker required for jobs
Frictional Unemployment
Caused by search time required by workers to enter or change jobs
Cost of unemployment
Personal
Loss of income
Social
Political/social unrest
Economic
Underutilizing resources
Full Employment
No cyclical unemployment
Economy is using all its
existing resources to produce at its potential GDP
Not the same as zero unemployment (There is still frictional & structural unemployment)
Reducing Unemployment
Enhance availability of information
Provide platforms which job seekers can find information of vacancy
Job Creation
Tax incentives or government grants to attract companies to set up their business in the country.
Improve Employability
Enhance skillset through education and training
Economic Indicators
Unemployment Rate
(No. of people unemployed/
Labour Force) x 100
Labour Force Participation Rate
(Labour Force/Working
Age Population) x 100
Changes in Labour Market
Labour Demand
Non-wage factors affecting labour demand will cause a shift of the labour demand curve.
Labour Supply
Non-wage factors affecting labour supply will cause a shift of the labour supply curve.
Definition
The number of workers who are able and willing to work exceeds the number of jobs available.
The supply of labour exceeds the
demand for labour in the labour market.
Labour Market Equilibrium
Labour demand and labour supply are equal.