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    Here is a possible 3 mark response: One possible cause of unemployment in Greece is structural unemployment. Greece has a large tourism industry but many Greeks do not have the necessary skills to work in tourism jobs. This means there is a mismatch between the jobs available and the skills of the workforce, leading to structural unemployment. Here is a possible 6 mark response analysing the costs: Greece has experienced high unemployment rates since the global financial crisis which has imposed significant fiscal and economic costs. The government has had to spend more on unemployment benefits to support those out of work, which has increased the budget deficit. This makes it harder for the government to implement other spending policies. In addition, with fewer people in employment there is less

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    Lesson 4 Unemployment (1)

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    Here is a possible 3 mark response: One possible cause of unemployment in Greece is structural unemployment. Greece has a large tourism industry but many Greeks do not have the necessary skills to work in tourism jobs. This means there is a mismatch between the jobs available and the skills of the workforce, leading to structural unemployment. Here is a possible 6 mark response analysing the costs: Greece has experienced high unemployment rates since the global financial crisis which has imposed significant fiscal and economic costs. The government has had to spend more on unemployment benefits to support those out of work, which has increased the budget deficit. This makes it harder for the government to implement other spending policies. In addition, with fewer people in employment there is less

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    7 views31 pages

    Lesson 4 Unemployment

    Uploaded by

    QWERTY
    Here is a possible 3 mark response: One possible cause of unemployment in Greece is structural unemployment. Greece has a large tourism industry but many Greeks do not have the necessary skills to work in tourism jobs. This means there is a mismatch between the jobs available and the skills of the workforce, leading to structural unemployment. Here is a possible 6 mark response analysing the costs: Greece has experienced high unemployment rates since the global financial crisis which has imposed significant fiscal and economic costs. The government has had to spend more on unemployment benefits to support those out of work, which has increased the budget deficit. This makes it harder for the government to implement other spending policies. In addition, with fewer people in employment there is less

    Copyright:

    © All Rights Reserved
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    of 31

    Unit 2

    Government
    and the
    Economy
    Macroeconomic Objectives:
    Unemployment
    Real Life
    Situation
    Spain predicts unemployment will hit 19
    percent – POLITICO

    Task: Read the article and discuss what is


    causing Spain’s unempoloyment
    DEFINITIONS AND KEY TERMS
    Calculating
    Unemployment
    Measuring Unemployment: International Labour Organisation In employment, unemployed or economically
    (ILO) definitions inactive?

    NB: People out of work, but don’t meet


    the definition are classified as
    ECONOMICALLY INACTIVE
    Types of
    Unemployment
    Cyclical

    Structural
    Five main types
    of Seasonal
    unemployment
    Voluntary

    Frictional
    Cyclical or Demand Deficient Unemployment
    Task: Can you illustrate what will happen to aggregate demand during a “downturn”?

    Exam practice:
    1. What is meant by the term “unemployment”? (2 Marks)
    2. Explain ONE reason for the rise in Unemployment during a downturn (3)
    Task:

    Can you
    explain each
    of these &
    find real life
    examples?
    Task: Read your text and make notes on the
    following types of unemployment:

    • Seasonal
    • Voluntary
    • Frictional

    Exam practice:

    1. What is meant by the term “structural


    unemployment”? (2 Marks) NB: TWO
    pieces of information needed

    2. Analyse the causes of structural


    unemployment. ( 6 Marks) NB: Point,
    Explanation, Application

    Once complete, highlight the TWO pieces of information in Q1 and the Point, Explanation, Application in Q2
    Read the case opposite and think about the following
    questions:

    1. What type of structural unemployment is Marine


    experiencing? Sectorial, Technological or Regional?
    (see P214 of text)

    2. How can she improve her “occupational mobility”?


    Solutions to
    Unemployment
    Starter/Plenary
    Demand Management Policies for unemployment Two types of policy exist:

    1. Fiscal: Tax and Government Spending


    2. Monetary: Interest Rates

    Explain how this leads to a fall in unemployment


    Supply Side Policies for unemployment Two types of Supply side Policy:
    1. Market Oriented policies: Labour reforms, Incentives and Encourage
    Competition
    2. Interventionist policies: Human capital, Infrastructure, Industry and Technology

    Explain how this leads to a fall in unemployment


    Abolish Minimum wages

    Reduce Trade Union bargaining power

    Labour market Reforms

    Limit Unemployment benefits

    Reduce Job security


    Lower Lower personal income taxes

    Incentive
    related Reduce Reduce corporation taxes

    policies:

    Minimise capital gains tax and tax on interest


    Minimise income
    Encouraging competition through:
    https://www.industryweek.com/the-ec
    onomy/article/22025267/deregulation-
    under-president-trump-behind-the-nu
    mbers

    PRIVITISATION DE-REGULATION OUTSOURCING COMPETITION LIBERALISATION


    LAWS OF TRADE
    https://www.broo
    kings.edu/interacti
    ves/tracking-dereg
    ulation-in-the-tru
    mp-era/
    Create a revision summary: Use pages 343-345 of Cambridge textbook
    Supply side policy: Explanation of how it shifts Evaluation of policy
    SRAS
    Market based:
    Starter:

    Using the following terms in this order,

    PRODUCTIVITY, COST OF PRODUCTION,


    AGGREGATE SUPPLY AND UNEMPLOYMENT,

    explain the purpose of a specific Labour Market


    Reform to your neighbour.
    The Impact of
    Unemployment
    How can unemployment lead to the following effects?

    Can you create an easy to remember acronym from this information


    The Personal Costs of Unemployment

    Comment on these personal costs of unemployment.


    Read the following article and make a note
    on the following costs of unemployment:

    • Personal

    • Social

    • Economic

    https://www.linkedin.com/pulse/cost-unemployment-personalsocial-economic-sayeed-afzal
    Explain ONE possible cause of unemployment in Greece. (3 Marks)

    Analyse the Fiscal and Economic costs of unemployment in Greece.


    (6 Marks)

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