Unemployment

28.09.2020
 STARTER
 

Case study P.211

 The Big
Q
What is the impact of
unemployment?
 TASK
Define unemployment

How is unemployment measured?

Explain how the ILO defines unemployment.

What are the types of unemployment? Explain and give examples

What is the impact of unemployment? (use headings in textbook)

 What is unemployment?
Unemployed people are defined as those who want a job but cannot
find work.
 How is Unemployed measured?
Unemployment is measured by carrying out a survey. The survey
used in the EU is called Labour Force Survey and is carried out
every month
In this survey the ILO (International Labour Organisation) defines
unemployment.
This definition is used internationally to make comparisons
 Types of employment
People are unemployed for a number of reasons:
 Cyclical or demand deficient unemployment
 Structural unemployment
 Seasonal unemployment
 Voluntary unemployment
 Frictional unemployment
 Case Study

Case study – P215

1. What is the difference between sectoral and technological unemployment? Use the example in this
case to support your explanation.
• Marine D’Arcy has been made unemployed twice recently. In 2015, she was laid off by Vent
Plastique, a manufacturer of plastic household products based in Lyon. Marine worked on the
factory floor but the company was taken over and production was switched to the Far East. Marine
is a victim of sectoral unemployment in this example. Manufacturing is in decline in many western
economies and Marine was laid off due to changes in the structure of the economy. Marine
managed to get another job in Lyon working in a warehouse for a mail order company. She helped to
‘pick stock’ and process customer orders. Unfortunately, after 18 months the company automated
the warehouse resulting in 12 redundancies. Marine was laid off again. This time she was a victim of
technological unemployment. Her job is now done by a machine so her services are not required.
 Case Study

2. How might Marine improve her mobility in the labour market?

Marine can improve her geographical mobility by moving away from
Lyon. If she is prepared to move away, she is more likely to get a job.
This is because there will be more choice of jobs to apply for over a
wider geographical area. Marine can also improve her occupational
mobility. She could gain some qualifications at college. For example,
she could go on a training course and obtain some vocational
qualifications.
 Impact of unemployment

 Output
 Use of scarce resources
 Poverty
 Government spending on benefits
 Tax revenue
 Consumer confidence
 Business confidence
 Society
Case Study: Unemployment in South Africa