Definition

Unemployment occurs when a

person who is actively searching

for employment is unable to find
work.
the state of not having a job.
the total number of people who do
not have jobs in a particular place
or area.
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Economic Definition
Unemployment is
defined as a
situation where
someone of
working age is not
able to get a job
but would like to
be in full time
employment.
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 Unemployment is often used

as a measure of the health of

the economy. The most
frequently cited measure of
unemployment is the
unemployment rate. This is
the number of unemployed
persons divided by the number
of people in the labor force.

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CAUSES
OF
UNEMPLOYMENT

1. Frictional Unemployment
This is unemployment caused by the time people
take to move between jobs, e.g. graduates or
people changing jobs.

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2. Structural Unemployment
This occurs due to a mismatch of skills in the
labour market it can be caused by:

Occupational Immobilities

Geographical Immobilities

Technological Change

Structural changes is the economy

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3. Classical or Real Wage

Unemployment
This occurs when
ages could be
pushed above the
equilibrium level
by minimum
wages or trades
unions. This is
sometimes known
as disequilibrium
unemployment.

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4. Voluntary Unemployment
This occurs when
people choose to
remain unemployed
rather than take jobs
available.
Frictional
unemployment is also
a type of voluntary
unemployment as they
are choosing to wait
until they find a better

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5. Demand Deficient or Cyclical

Unemployment

This occurs when the economy is

below full capacity.

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EFFECTS
OF
UNEMPLOYMENT

On the government:
Fewer tax revenues
Lower economic growth (GDP)
Higher welfare costs
Higher supply-sidecosts

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On firms:

Fewer tax revenues

Lower economic growth (GDP)
Higher welfare costs
Higher supply-sidecosts
Lower wage costs
Larger pool of labour
Less demand for goods and services
Increase in demand for inferior goods
Higher training costs

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On people:
Lower standard of living
Loss of skills
Loss of confidence/depression

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Statistical
Updates

MLS 2-E GROUP1

Philippines

MLS 2-E GROUP1

Asia

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MLS 2-E GROUP1

World

MLS 2-E GROUP1

END

MLS 2-E
Group 1
Members:
Daulo, Louie Carl
Javellana, Hazel Arabelle
Perez, Princes Gem
Sonza, Hyacenth Grace