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17 Cards in this Set
- Front
- Back
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Types of unemployment |
Frictional, Cyclical, Seasonal, Structural, |
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What is Frictional Unemployment? Causes? Impacts? |
Definition: -short-lived unemployment caused when people change jobs with a break in-between ( up to 8 weeks) -Voluntarily -gap between two jobs -Could be when people search for new jobs - Includes new returning to labour market (ex. After starting family) Causes: -Workers move before they can search for a new job -Gotten married or had to take care of relative -Any reason for leaving a job before finding a new one Impacts: -Can be good for economy: broader scale of those available and often well-skilled to chose from -People are moving to better jobs and seeking better oppurtunities, beneficial to households -No dramatic impact
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What is Cyclical Unemployment? Causes? Impacts? |
Definition: -workers forced to leave jobs because of the business’s insufficient spending in economy -Temporary (Last up to 18 months) -At its lowest when business is at its peak -Rises when business goes into recession -Supply and demand Causes: - reduced spending,rate rises -Economy contracts Recession -Slow economic growth Impacts: -Lack of demand and services -Lower demand for labour -Less disposable income for households -Government spends more to combat unemployment |
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What is Seasonal Unemployment ? Causes? Impacts? |
Definition: -Short term unemployment -Certain professions aren’t needed for certain times of the year Causes: -Time of year is not suited for someone’s profession (e.g ski instructors in July, theme park employees in winter) -absence of demand for a certain type of worker Impacts: -Employees given -Governments produce seasonally adjusted unemployment statistics -Seasonal adjustment is a statistical method for removing the seasonal component of a time series that exhibits a seasonal pattern -Tourist areas/firms might have a hard time considering there is only significant business in certain months |
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What is Structural Unemployment ? Causes? Impacts? |
Definition: -More permanent form of unemployment -When firms and industries are run down and no new industry steps up to take up the workers made unemployed Causes: - regional unemployment -caused by change in demand patterns, obsolescence of tech -trade agreements causing companies to move to other countries leaving other workers behind -Rapid relocation of businesses Impacts |
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Solutions to Cyclical Unemployment |
-The Federal government can use expansive monetary policy (in which the central bank increases money supply) lowering interest rates and increasing demand -The government can provide consumers and businesses with money through expansive fiscal spending (cutting taxes, spending or funding more). This creates more spending and overall disposable income. This creates higher demand for products and labour because business would be producing more to meet the product demand. -Spending on public works projects to create construction jobs |
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Solutions to Seasonal Unemployment |
-Regulations which involve paying workers throughout the year, even if work is temporar -Government creating jobs in offseason to improve infrastructure -Boosting human capital with training of specific jobs during off-season |
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Solutions to Structural Unemployment https://prezi.com/459eldlfbwce/economics-structural-unemployment-solutions-evaluations/ |
-New training for workers for technology -Investing in research and development |
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Examples of Frictional |
-When a college student just graduates -Athletes changing clubs -Someone who was just lad off looking for a new job |
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Examples of Cyclical |
-When a manufactural worker is laid off because the economy is in a recession and there is less demand for labour |
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Examples of Seasonal |
-Staff members for a tourist attraction |
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Examples of Structural |
-tech replace workers -skills needed in manufacturing are in less demand as businesses relocate leaving those unskilled for other jobs |
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Solutions to Seasonal unemployment |
-diversify the economy -unemployed find other jobs for the off-season |
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What is Unemployment |
When people are available and actively seeking jobs and are are unable to find one |
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How to measure unemployment |
Climate count-Those with unemployment benefits (Jobseeker's allowance) Labour Force Survey-hose who classify as unemployed in a government survey |
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Interpret this graph : |
-In July through September in the year 1979 the unemployment rate is 5% which is fairly low but steeply rises up to 12% by 1983. -The Unemployment rate consists of steep rises and falls -The period where it remained not consistent is 1999-2009 |
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Difference between Structural and Cyclical Unemployment |
Structural- based on lack of demand for certain type of labour force -Can be unpredictable -more permanent Cyclical- based on the natural cycles of a business (expansion/recovery-> peak-> recession-> depression-> recovery etc. ) -predictable -temporary can lat up to 18 months |
