Transcript unemployment - econbus

Starter…
 What
is inflation?
 How does the govt measure the
general price level?
 What is deflation?
 What is hyperinflation?
Unemployment
Can you guess which type of
unemployment is which?
Seasonal

Unemployment for
part of the year

Seasonal variation in
demand

So what other types
of ‘seasonal
unemployment’ can
you identify?
Structural

Structural
unemployment have the
wrong skills in the wrong
place

Declining industries and
the immobility of labour

So can you identify other
‘structural
unemployment’?
Regional??

High unemployment
in one area

Local concentration of
declining industries
Cyclical

All firms need fewer
workers

Low total demand in
the economy

A result of a
‘recession’ or ‘slump’
in the economy.
What we are
facing in today’s
current economy
Technological

Firms replace workers
with machines

Automation and
information
technology

So what jobs have
been replaced by
automation?
Frictional

Workers temporarily between jobs.

This is a short term cause of unemployment.

Many people have a time lag between leaving
one job and starting another.

Unfortunately in a recession – this time lag is
longer than expected!
Voluntary

Workers choose
to remain
unemployed

More money 'on
the dole' than
from working
Yeah but……….
Cyclical unemployment

Also known as
‘involuntary
unemployment’
…. since there is
nothing the
‘individual’ can
do to prevent
this type of
unemployment
…
Types of Unemployment

Guess what type of ‘unemployment each
character faces…
Your task

Complete the
worksheet







Seasonal
Structural
Frictional
Cyclical
Regional
Technological
Voluntary
Answers…
Answers…
Cyclical
Technological
Frictional
Structural
or cyclical
Answers…
Cyclical
Voluntary
Frictional
Cyclical
Some statistics & exam skills…
What type of
relationship is there
between
unemployment & GDP
Unemployment trends since 1980!
Why is this
a worry?
Video clip – Jan 2010

The number of people
unemployed in the UK
has fallen unexpectedly
for the first time in 18
months.

Total unemployment
stood at 2.46 million for
the three months to
November, down 7,000
on the figure for the
previous three months.
Voluntary V involuntary

What is the distinction between voluntary and
involuntary unemployment?

A worker is described as voluntarily unemployed
if, at the given level of wages available, he or
she does not yet wish to accept a paid job.

Involuntary unemployment exists when
someone would be prepared to work at the
going wage rate, but for one reason or another,
they are unable to find work.
How can Govt ‘remedy’ each
unemployment type?
Your task…..
Complete this
worksheet
4.1 Types_of_Unemployment_hwk
sheet.doc
Causes and remedies of
Unemployment
Type
Frictional
Structural
Cyclical
Technological
International
Regional
Seasonal
Voluntary
Description
Cause
Remedy
Answers…


Homework

Make some NOTES…
Revision …You have
an assessment NEXT
lesson…on Tuesday.

READ P196 – 198

Describe the difference
between LFS/ILO and
Claimant count.

EXPLAIN …Why can
both systems be
criticised for under
estimating overall
unemployment?
Revise…




Macro Economic
objectives
Circular flow of income
Measuring National
Income
HDI issues…