Employment & Unemployment – AS/A LEVELS/IB/IAL

Employment & Unemployment – AS/A LEVELS/IB/IAL

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Employment and Unemployment

There are two measures of unemployment in the UK.

The International Labour Organisations (ILO) – Labour Force Survey (LFS).

The Labour Force Survey (LFS) is a questionnaire that asks people if they have been out of work for the last 4 weeks and ready to start work within the next 2 weeks.

The claimant count

This records people claiming job seekers allowance (JSA).

Types of unemployment

Frictional Unemployment

This is the time in-between jobs when people are not working.

Cyclical/Demand Deficient Unemployment

This occurs when there is a lack of demand for a good or service causing unemployment.

Structural Unemployment

This is caused by a decline in a particular industry causing redundancies.

Seasonal Unemployment

This occurs due to certain industries only requiring labour at particular times of the year. e.g. more staff are required by an ice cream company during summer.

Costs of Unemployment

The costs of unemployment are not just felt by those who are unemployed. The list below highlights the main costs of unemployment.

  1. Loss of incomes.
  2. Depletion of skills if they are out of work for long.
  3. Firms start to experience a decrease in demand and profits.
  4. Governments will collect less tax revenue and pay out more benefits.
  5. Impact on dependents of those who lose their jobs.
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