Working population in the UK is 30 m There are people with no jobs but who are actively seeking work but can’t find work. International Labour Organisation.

Working population in the UK is 30 m There are people with no jobs but

who are actively seeking work but can’t find work.

International Labour Organisation (ILO)

Claimant Count : individuals who claim Jobseekers allowance.

CC will always be lower than ILO

Look at Figure 34.1 on page 156

Cyclical Unemployment: In a downtown or recession demand for goods and services falls and unemployment will increase.

Structural Unemployment: A) Sectoral Unemployment : decline in

industry B) Technological Unemployment: as

technology improves people lose jobs as machines can do the job.

C) Regional Unemployment: certain areas in the UK have high unemployment. E.g. North East UK

Frictional Unemployment: people are unemployed as they move from one job to another

Seasonal Unemployment: Summer jobs and seasonal work

Voluntary unemployment: don’t like the work on offer or will not accept the wage offered.

Cost to the Individual: lose of income can led to lose of homes or family break-ups

Cost to business: fall in demand due to unemployment particularly in luxury goods. Spare capacity and paying redundancy also occurs.

Cost to economy: GDP decreases, tax revenues fall.

Cost to local communities: closure of a local industry destroys a community.

Question 1 on page 158 Question 2 on page 159 Economics in Practise on page 159