mention the causes and measures for unemployment
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The two major ways of measuring unemployment are....
(i) To count those in receipt of unemployment related benefits and
(ii) To carry out labour force surveys.
The first method is known (in the UK) as the claimant count. This method has the advantage of being relatively cheap and quick, as the information is gathered any way by the government to know the amount paid out in benefits and its recipients. Its disadvantage, however, is that it tends to understate unemployment.
Whilst some people who are actually working fraudulently claim benefits, their number is less than those who are actively seeking employment but not receiving unemployment benefits. People on government training schemes, those staying on at school and some who have been forced to retire early, may actually be searching for employment but they won’t be receiving unemployment benefits.
Many countries use a labour force survey, as a way to measure unemployment. This method has the advantage that it can be used to make international comparisons. It also tends to capture the unemployed population more accurately.
The accuracy, though, depends on how the questions are asked and interpreted and whether the sample selected is representative of the labour force as a whole. This method also takes longer, to gather the information than a claimant count.
The Causes of Unemployment:
Unemployment can arise due to a number of reasons. One is that workers, who have been fired or voluntarily left one job, have to wait for some time before finding another job. This type of unemployment is called frictional unemployment. One form of frictional unemployment is, what is called, search unemployment.
This arises when workers do not accept the first job offered but spend time looking around for what they regard as an ‘acceptable job’. Two other forms of frictional unemployment are casual and seasonal. Casual unemployment occurs when people are out of work between periods of employment.
Actors and migrant farm workers are particularly prone to casual unemployment. Seasonal unemployment affects workers, including those working in the building and tourist industries, whose labour is not in demand at certain periods of the year and during periods of bad weather.
(i) To count those in receipt of unemployment related benefits and
(ii) To carry out labour force surveys.
The first method is known (in the UK) as the claimant count. This method has the advantage of being relatively cheap and quick, as the information is gathered any way by the government to know the amount paid out in benefits and its recipients. Its disadvantage, however, is that it tends to understate unemployment.
Whilst some people who are actually working fraudulently claim benefits, their number is less than those who are actively seeking employment but not receiving unemployment benefits. People on government training schemes, those staying on at school and some who have been forced to retire early, may actually be searching for employment but they won’t be receiving unemployment benefits.
Many countries use a labour force survey, as a way to measure unemployment. This method has the advantage that it can be used to make international comparisons. It also tends to capture the unemployed population more accurately.
The accuracy, though, depends on how the questions are asked and interpreted and whether the sample selected is representative of the labour force as a whole. This method also takes longer, to gather the information than a claimant count.
The Causes of Unemployment:
Unemployment can arise due to a number of reasons. One is that workers, who have been fired or voluntarily left one job, have to wait for some time before finding another job. This type of unemployment is called frictional unemployment. One form of frictional unemployment is, what is called, search unemployment.
This arises when workers do not accept the first job offered but spend time looking around for what they regard as an ‘acceptable job’. Two other forms of frictional unemployment are casual and seasonal. Casual unemployment occurs when people are out of work between periods of employment.
Actors and migrant farm workers are particularly prone to casual unemployment. Seasonal unemployment affects workers, including those working in the building and tourist industries, whose labour is not in demand at certain periods of the year and during periods of bad weather.
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