Employment And Unemployment
Overview
Unemployment is one of the most closely watched figures in any economy: it measures wasted talent, lost output and real hardship for families. But not all unemployment is the same, and the cure depends on the cause.
In this lesson you will learn how unemployment is measured and calculated, distinguish frictional, structural, cyclical and seasonal unemployment, weigh the consequences for individuals, firms, government and the economy, and evaluate the policies that can bring it down. By the end you will be able to diagnose unemployment and prescribe the right remedy.
Objectives
- how unemployment is measured (labour force survey)
- formula for the unemployment rate
- frictional unemployment
- structural unemployment
- cyclical unemployment
- seasonal unemployment
- consequences of unemployment for the individual, producers/firms, the government and the economy
- the range of policies available to reduce unemployment and their effectiveness
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Mind map
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Flashcards
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Lesson Note
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Lesson Evaluation
Congratulations on completing the lesson on Employment And Unemployment. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.
You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.
Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.
- The unemployment rate is calculated as: A. number employed / population x 100 B. number unemployed / labour force x 100 C. labour force / population x 100 D. number unemployed / population x 100 Answer: B
- A graduate spending a few weeks looking for their first job is an example of: A. cyclical unemployment B. structural unemployment C. frictional unemployment D. seasonal unemployment Answer: C
- Unemployment caused by a general lack of demand in a recession is called: A. frictional B. seasonal C. structural D. cyclical Answer: D
- A labour force of 20 million includes 2 million unemployed. The unemployment rate is: A. 2% B. 5% C. 10% D. 20% Answer: C
- The best policy to reduce structural unemployment is: A. cutting interest rates only B. retraining and education for new skills C. raising total demand alone D. doing nothing, as it self-corrects Answer: B
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