Can someone give me the lowdown on unemployment.
Causes, effects, definitions of stuff like 'search unemployment' etc.
I'm too lazy to get off my fat ass and read a book. Besides, teaching me aids your revision so go for it
But seriously, jokes aside, it is much appreciated.
- Thread Starter
- 16-05-2013 17:30
- 16-05-2013 17:48
Im doing edexcel and we need to know about unemployment for unit 2
Main cause of unemployment can be anything thats shifts AD/AS inwards as RNO (X axis) decreases which leads to increase in unemployment
4 Types of Unemployment:
Structural Unemployment- workers dont have the right skill set to get job e.g in 1980's alot of miners faced structural unemployment as they didn't have skills to work in public sector. To solve it the government can spend in education and training (supply side policy) and then there are all the adv and dis
Real Wage Unemployment- NMW increases which increases production cost so firms have to lay off workers as way to stay competitive
Cyclical Unemployment- there is a recession so AS shifts inwards causing lower profits to firms so they lay off workers
Frictional Unemployment- When workers get fired the time they take to find a new job. in that time period they are unemployed which is frictional unemployment. ( this is the best type of unemployment as it is only short term)
Effects of Unemployment:
To individual- Decrease (Dc) in living standards as disposable income decreases, increases stress and health conditions, longer they stay out of work more unattractive they are to workers to get employed
To Government- increase (Ic) in spending in the form of unemployment benefits as more people unemployed , Dc in tax revenue...get less in income and co-operation tax.
To Firm- Dc in D for goods and services will lead to Dc in profits..affected by negative multiplier effects BUT less pressure for higher wages as workers dont want to lose their jobs
Hope that helps...dont know if i missed anything out :s
- 16-05-2013 17:52
dole seekers m8
- 16-05-2013 17:53
That was of course a piss take, I don't really preach dole seeking or take part it that shizzle myself -.-
- 16-05-2013 18:06
seasonal unemployment as well, where you work for periods of time due to demand at different times of the year.
like christmas temps or a hotel worker in the summer
- 16-05-2013 18:43
Structural - When economy changes nature e.g. agriculture - manufacturing meaning retraining needs to be done so there is likely to be LT manufacturing
Seasonal - Seasonal changes so demand for some jobs lower
Frictional - Transitional because people are moving between jobs, short term. Poor info on available jobs will lengthen the search
Cyclical - part of the economic cycle, recession etc.
- Thread Starter
- 16-05-2013 20:24
Wicked. Excellent contributions everyone. I understand now.