Unemployment notes

Types of Unemployment

Frictional is when worker changes job and is unemployed for short time e.g. people employed for short time contracts, agency workers.
Structural is when industrial structure of economy is changing. E.g. in UK many coal mines were closed so it increased unemployment rate as skills of these employees were no longer needed as there was no demand for their services.
Regional occurs in particular region only e.g. Dundee jute and jam industry are being closed down.
Cyclical (demand deficient) this is when there is no demand for products and services In a certain area and in that particular industry employees are no longer needed.
Seasonal is when economy is depending on time of year or weather so inly particular jobs are available for that period of time e.g. Santa Claus or holiday reps.
Technological is when employees are replaced by machinery and when industries changing from labour intensive to capital intensive.
Residual is when someone does not work or cannot because of disability.

Employee Industry
Poverty less disposable income
Psychological problems
Social Problems
Erosion of skills Government uses revenue to pay for benefits
Decreased government Revenue
Opportunity cost of the unemployed if they were working. Increased national output rather than gross domestic output

Demand pull is when is when shortage of supply of goods or service causes the price of it to rise and prices are increased to restrict demand e.g. price of housing.
Demand push is when cosy=t of production including labour has increased and prices of product decreases.
Latent is when inflation is hidden e.g. decrease in weight or quantity of products.
Hyper inflation is when country has printed lots of money but have not enough gold to cover it up so their money is not worth as people now prefer goods to savings and money.
Stagflation is when both inflation and unemployment in country rises