Notes on economics systems.

Economics Notes

Unemployment - Mind Map

Mind Maps have been produced to introduce topics and give students an overview of key topics being studied. The maps can be viewed as a whole page or, for those who prefer a more linear approach, as a text version.

View a larger version of the mind map.

• The working population
  
  • Individuals of working age available to work
  • Self employed
  • Economic activity
  • Economic inactivity
• Employment trends
  
  • Shift from employment in primary to secondary to tertiary sectors of economy
  • Demand for highly skilled workers
  • Demographic change
  • Self employment
• Measuring unemployment
  
  • Differences in counting unemployment
  • Not just the out-of-work
  • Registered unemployed and claiming benefit
  • Unemployment rate is % of labour force officially out-of-work
  • Labour Force Survey
  • International Labour Organisation
  • International comparisons
  • Long-term sick
• Impact of unemployment
  
  • Opportunity cost
  • Benefit costs
  • Lost tax revenues
  • Impact on individuals, families and households
• Trends in unemployment
  
  • Unemployment is a flow not a stock
  • If inflows of individuals registering as unemployed rise and outflows fall, then unemployment rises
  • Length of time unemployed is a good indicator of the health of the overall economy - shorter the better
  • Government likes to highlight number of vacancies registered as indicator of economic health
  • Unemployment very low in 1960s
  • As economy recovered in the late 1980s unemployment fell slowly
  • Recession in the late 1980s to early 90s led to a rise in jobless levels
  • Unemployment fell during the 1990s, remaining low by the official count since the late 1990s
• Causes of unemployment
  
  • Frictional
  • Structural
  • Cyclical
  • Seasonal
  • Technological
  • Regional
  • International
  • Voluntary
• Tackling unemployment
  
  • Better information about job availability
  • Subsidise employment in specific regions or industries
  • Increase government spending
  • Cut taxation
  • Retraining schemes: national, regional and industry-specific
  • Intervene in trade by using quotas and tariffs
  • Use the exchange rate to boost demand for home-produced products and services
  • Incentivise employment by removing low-paid from income tax liability

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