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Employment and Unemployment - Coggle Diagram
Employment and Unemployment
Full employment
Everyone who wants a job can find one at existing wage levels
Around 4%
Workforce: employed people
labour force
Those in the workforce and those unemployed
Unemployment rate
Unemployed/labour force x100
Underemployment
workers skills/time not being ustilised to full potential
Live Register vs LFS
Live register
Counts those who receive unemployment-related social welfare payments
Cons:
counts partial social welfare payment,
Counts people in shadow economy,
voluntarily unemployed
LFS
32,500 households each quarter,
Cons:
achieved sample depends on who answers
Causes of Unemployment
Structural
Mismatch in skills of unemployed and jobs available
Frictional
the period of time between switching jobs
Seasonal
someone working in tourism might be unemployed in winter months
Cyclical
falls when economy is strong and rises when economy is weaker
implications of unemployment
Economy
Reduced consumption expenditure
Less investment
Government finances
Social welfare cost increase
Less government revenue
current budget deficit
Individuals/ households
Emigration rises
Brain drain
Household income
poverty
Homes repossessed by banks
Inequalities
Government actions to reduce unemployment
Cut VAT to increase flow of income
subsidise employers
Grants to those who hire off live register
provide opportunities to retrain
promote international tourism
Promote exports
Reduce business costs
Provide assistance