Economics 0455 Topic 4.7 Notes - Employment and unemployment
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Course
Economics
Institution
These topic notes have been made in conjunction with the 0455 Cambridge IGCSE Economics syllabus, utilising diagrams and explanations from various study resources. They cover all the syllabus statements for Topic 4.7 of the syllabus - Employment and unemployment. The notes are written in concise bu...
4.7 - Employment and unemployment
4.7.1 Definition of employment, unemployment and full employment
Definitions
Employment: Employment is the amount of people in the labour force that is
supplying labour at a given wage rate
Unemployment: Unemployment is the amount of people in the labour force, who are
willing and able to work, but cannot find a job
Unemployment rate: The percentage of the labour force that is actively seeking a
job, but without one.
# 𝑢𝑛𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑
𝑙𝑎𝑏𝑜𝑢𝑟 𝑓𝑜𝑟𝑐𝑒
x 100%
● Rate < 10% = good
Chronic unemployment: When a worker has been unemployed for a very long time
(e.g 2 months)
● The longer a worker is unemployed, the more difficult it is for them to rejoin
the labour market and find a job
Full employment: when unemployment is at its lowest rate
4.7.2 Changing patterns and levels of employment
Changes in the patterns of employment
1) Increase in the proportion of workers employed in tertiary + quaternary
sectors
2) Employment from informal to formal economy
3) Increase in percentage of women in the labour force (due to social attitudes +
education)
4) Change in working hours (full-time + part-time work)
5) Change in employers (public → private sectors)
6) Occupational + geographical mobility
4.7.3 Measurement of unemployment
How do you measure unemployment?
● There are 2 methods
1) Claimant count
2) Labour force surveys
Claimant count
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