Unemploym

ent
Regina Carbonell

What is it?
Situation where someone of working age
is not able to get a job but would like to
be in full time employment.
Unemployment means that scarce human
resources are not being used to produce
goods and services to meet peoples
needs and wants

How can it be
measured?
Claimant Count number of
people eligible for Job
Seekers Allowance (note
people may be viewed as
unemployed but not eligible
for benefits)
Labour Force Survey A
survey asking people
whether they are out of
work and actively seeking
work

Difficulties
measuring it
Hidden unemployment (working people who
are excluded from the measure of
unemployment because of the definition of
unemployment)
Underemployment (people want full-time
jobs, yet are only able to get part-time jobs)
Regional, gender, age and ethnic disparities
are not taken into account as it is an
average

Types and
Causes

Classical
Wages are too
high, price of the
good is too high,
no one buys the
good so the firm
moves to a
cheaper country or
bankrupts

Structur
al
* Demand for the
product falling
* Some skills are
no longer
needed

Friction
al
This is the desirable
process of finding
work, employers
looking for the right
worker. In order to
help accelerate this
process, governments
assist people looking
for jobs with programs
and qualification
surveys.

Seasona
l
Caused by
changes in
season

Cyclical /
Demand
deficient
Unemployment
resulting from
business recessions
that occur when total
demand is
insufficient to create
full employment.

Regiona
l
If one of the mayor
employer firms/
business etc. closes
down that are is
going to have huge
unemployment
rates.

Volunta
ry
You are
unemployed by
choice, you get
money from the
government
anyway