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Unemployment

Unemployment. To identify the problems of measuring unemployment To explain the costs of unemployment To analyse the costs of unemployment. Unemployment. Problems of measuring unemployment: Some people have jobs on the side

marah-rutledge
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Unemployment

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  1. Unemployment To identify the problems of measuring unemployment To explain the costs of unemployment To analyse the costs of unemployment

  2. Unemployment Problems of measuring unemployment: Some people have jobs on the side Does not take into account those who have not registered as unemployed Very expensive to collect & compare (LFS) Only LFS is suitable for comparison

  3. Unemployment The two main measures are: The Claimant Count The Labour Force Survey

  4. Unemployment Claimant Count: measures the number of people claiming unemployment-related benefits - Jobseeker's Allowance (JSA) It does not include people claiming other benefits

  5. Unemployment Pros of Claimant Count: Counts those people claiming Job Seekers Allowance (JSA) Relatively, easy & cheap to compile Cons of Claimant Count: Many people claim JSA, but are working as well Highly inaccurate & not suitable for comparison

  6. Labour Force Survey (LFS) uses international definitions of employment & a range of related topics such as: Occupation Training Hours of work Personal characteristics of household members aged 16 years and over (e.g. ethnicity, age, availability to work) Completed quarterly

  7. Unemployment Pros of Labour Force Survey (LFS): Highly accurate & more reliable than the Claimant Count Useful for international comparison Cons of Labour Force Survey (LFS): Very expensive – skills of interviewer Very time-consuming – approx. 15,000 are contacted

  8. Unemployment In pairs: Identify three types of unemployment For each, provide a definition For each, provide a Solution State four costs of unemployment

  9. Costs of Unemployment [1] Loss of Income: leading to a decline in living standards Negative multiplier effect Loss of national output (GDP falls) Waste of scarce resources – skills & experience Fiscal costs: budget deficit Unemployment benefits rise

  10. Costs of Unemployment [2] Social costs: Crime Lower living standards Social & income inequality Physical & mental health issues

  11. Economically Inactive Thinking about the definition of unemployment, what do you think the definition of economically inactive is?

  12. Economically Inactive …are not in work and do not meet the internationally agreed definition of unemployment They are people without a job who have not actively sought work in the last four weeks and/or are not available to start work in the next two weeks - Are looking after family members, retired

  13. Plenary – Measuring Unemployment What is the difference between the Claimant Count & The Labour Force Survey? Which is more reliable & why?

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