| Define Unemployment in Economic Terms [Level and Rate] | -Level of Unemployment is the Number of People who are Looking for a Job, but can't find one
-Rate of Unemployment is the Number of People out of Work as a % of the Labour Force [All the People who are Willing and Able to Work - Includes those Working, and those Looking for work] |
| How does the Claimant Count measure Unemployment? | -This is the Number of People claiming Unemployment Benefits from Government - Includes those collecting Jobseekers Allowance [JSA] Universal Credit and other groups. |
| What are the Benefits, but Drawbacks of using the Claimant Count? | -Data is Easy to Obtain, just count who is collecting Unemployment Benefits
-No Cost in Collecting the Data as its Recorded when People apply for Benefits
-But it can be Twisted by Government to make it look Smaller. If Government decides to put School Leaving age at 19, this can reduce the 'Unemployment'
-And it will Exclude those Looking for Work, but is Unable [Or doesn't want to] get any Benefits |
| How does the Labour Force Survey measure Unemployment? | -International Labour Organisation [ILO] will use a Sample of the Population, and ask People who aren't working if they are Actively Seeking Work.
-Number of People who say 'Yes' [Regardless of Benefits] added up to the ILO Unemployment Count. |
| What are the Benefits, but Drawbacks of using the Labour Force Survey | -More Accurate than the Claimant Count
-Internationally Agreed Measure for Unemployment so allows Easy Comparisons
-But its rather Expensive to Put and Gain the Data
-And it can be Unrepresentative of the Population, making it Wrong |
| Why does the Labour Force Survey usually have a Higher figure than the Claimant Count? | -The Claimant Count will exclude certain Groups out. For Example, people may be Unable to get Benefits as they have a Rich Husband, or too much in their Savings
-They may still be Actively Looking for a Job, but they won't be Included in the Claimant Count Figure |
| Why does Unemployment prove to be a Cost to the Economy?
-Why does Government want to Track Unemployment figures? | -High Rate of Unemployment can make an Economy seem Ill
-Unemployment leads to Lower Incomes and Less Spending, making Firms affected too by Cutting Production
-Unemployment means there is Unused Labour, so Fewer Goods and Services can be Made [PPF]
-Government has more Costs in the form of Welfare Benefits, and less Revenue as there is Less Tax |
