economic preliminary research task

Topics: Unemployment, Economics, Monetary policy Pages: 10 (2754 words) Published: June 1, 2014
Labour Market: Stimulus/Research Task
What is meant by the term unemployment?
Unemployment refers to a situation where individua want to work but are unable to find a job, and as a result labour resources in an economy are not utilized. Unemployment is often used as a measure of the health of the economy. Different types of unemployment

cyclical unemployment (involuntary unemployment due to fall in the demand for labour) Caused by a contraction in economic activity or aggregated demand. (downturn in the business cycle, derived demand for labour) When there is a downturn in the business cycle, demand fro goods and services falls, forcing firms to reduce production and reduce number of workers to maintain profit level. structural unemployment

Caused by the mismatch between the skill demanded and the skill possessed. (Increased by restructuring of the economy and the introduction of new technology) Workers unemployed from pre-restructure (old) companies, do not find the skills they possess not appropriate in the newer industries. Causing the situation where the company requires labour, but still cannot employed that group of unemployed (因为他们的技能不符合新型公司的要求) long-term unemployment

Unemployed for a period of 12 months or more.
the longer a person is out of work, the harder it becomes for them to get a job. Long-term unemployment can start out originally as cyclical unemployment. Eg. a downturn causes a person to lose his/her job. During the later recovery, the economy may not grow quickly enough ti eliminate for all cyclical unemployment. Resulting the person to find him/herself to be unemployed for more than 12 months (changing into long-term unemployment), this long-period of time may cause the person to lose their job-related skills, so employers will be more reluctant to hire someone who has been out of work for a long time. seasonal unemployment

Caused by the seasonal nature of some jobs (changes in the labour market which occur regularly each year, independent of the business cycle) For example: tourist related jobs and jobs associated with holiday seasons such as plump older man working as shopping centre Santa Clauses at Christmas . This unemployment rises during the December-March period of the year when school-leavers are seeking jobs and enter the labour force (year 12 graduates, or year 10) frictional unemployment

Occurs as people change jobs (from one job to another).
What is required to change jobs:
Time,
employment opportunity,
attendance of job interviews
administrative details.
因为有上面的诸多因素:there will always be a small level of frictional unemployment int the labour market, although improving the efficiency of job placement services can reduce the level of frictional unemployment. Regional unemployment

Occurs when a major industry (steel, TCF or PMV) in a particular geographical region reduces its demand (for reasons of undergoing large scale structural change and adjustment) for labour causing widespread unemployment. hard-core unemployment

unemployed because of personal characteristics, such as:
metal or physical disability
anti-social behavior
drug abuse
hidden unemployment
Refers to those individuals who are not counted in the official unemployment figures because they have given up actively seeking work or have gone back to school. Rises during a prolonged economic downturn.

Slower growth in aggregated demand means that the prospects of finding a job are very low, and some individuals become discouraged from seeking work. They are not officially employed as they are no longer actively seeking work, but they are still considered to be a part of the unemployment problem since they would work if labour market conditions were better. A rise in hidden unemployment will be reflected in a fall in the labour force participation rate rather than as an increase in the official unemployment rate. underemployment (technically not unemployed)

Refering to the individuals who have part time or...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on ECONOMICS
  • Economics Essay
  • Essay about Research Preliminaries
  • PRELIMINARIES Essay
  • business economics Essay
  • Research Task Essay
  • ECONOMICS Research Paper
  • Economics Preliminary Notes

Become a StudyMode Member

Sign Up - It's Free