Contents:

  1. Learning Outcomes
  2. Definitions
  3. Employment
  4. Equilibrium and disequilibrium unemployment
  5. Voluntary and involuntary unemployment
  6. Natural rate of unemployment
  7. Patterns and trends in unemployment
  8. Mobility of labor
  9. Policies to reduce unemployment

Candidates should be able to:

Definitions

Seasonal unemployment Unemployment that arises at particular times of the year when the demand for labor is low
Cyclical unemployment Unemployment that arises during the downturn of the economic cycle such as during a recession
Technological unemployment Unemployment that arises when workers do not have the skills needed to work with newly developed technology
Structural unemployment Unemployment arising because of changes in the pattern of economic activity within an economy
Frictional unemployment Unemployment associated with job search; consisting of people who are between jobs
Economically inactive Those people of working age who are not looking for work, for a variety of reasons
Consumer price index A measure of the general level of prices.
inflation A sustained rise in the general price level,measured by the rate of change of the average price level in an economy over a period of time
Discouraged workers People who have been unable to find employment and who are no longer looking for work
Working population All people between the ages of 15 and 64