Employment and unemployment
G3 Economics - syllabus K343, 2027
How unemployment is measured, its types and consequences, and policies to reduce it.
- Employment, unemployment and how they are measured
The unemployment rate is the number unemployed as a percentage of the labour force.
- Types of unemployment
Unemployment can be frictional, structural, cyclical or seasonal, and each has a different cause.
- Consequences of unemployment
Unemployment costs individuals their income, firms their customers, governments their revenue, and the economy its output.
- Policies to reduce unemployment
Demand-side policies fight cyclical unemployment; supply-side policies such as training fight structural unemployment.
- Put it together: Tackle rising unemployment
Unemployment has risen from 3% to 6%. Some is from a recession and some from factories closing permanently. Compare three measures.
What you will be able to do
I can define employment, unemployment and full employment.
Syllabus K343, 4.6.1. Definitions of employment, unemployment and full employment
Taught in Employment, unemployment and how they are measured
I can explain how unemployment is measured and calculate the unemployment rate.
Syllabus K343, 4.6.2. Measurement of unemployment: how unemployment is measured (labour force survey); formula for the unemployment rate
Taught in Employment, unemployment and how they are measured
I can explain frictional, structural, cyclical and seasonal unemployment.
Syllabus K343, 4.6.3. Causes/types of unemployment: frictional unemployment; structural unemployment; cyclical unemployment; seasonal unemployment
Taught in Types of unemployment
I can explain the effects of unemployment on individuals, firms, the government and the economy.
Syllabus K343, 4.6.4. Consequences of unemployment: consequences of unemployment for the individual, producers/firms, the government and the economy
Taught in Consequences of unemployment
I can describe the policies that reduce unemployment and judge how well they work.
Syllabus K343, 4.6.5. Policies to reduce unemployment: the range of policies available to reduce unemployment and their effectiveness
Taught in Policies to reduce unemployment