Causes
What is defined as a period of temporary economic decline during which trade and industrial activity are reduced.
Recession
When does frictional unemployment occur?
When people take time to find a job or don't find work immediately.
When does structural unemployment occur?
When does cyclical unemployment rise?
During economic downturns
In a country, there are 1,200,000 unemployed people. The total labor force is 10,000,000. What is the unemployment rate?
12%
Which cause is defined as a steep and sustained drop in economic activity featuring high unemployment and negative GDP growth
What is an example of frictional unemployment?
Changing jobs, being laid off, needing time to find the right position after school
List 2 of the 5 causes change in the skills that workers need to succeed?
The development of new technology, the discovery of new resources, changes in consumer demand, globalization, lack of education.
When does cyclical unemployment fall?
When the economy improves.
In a small town, there are 8,500 unemployed people, and the total labor force is 50,000. Calculate the unemployment rate.
17%
Which cause on unemployment refers to advancements and innovations that enhance the efficiency, productivity, and overall effectiveness of processes in various economic sectors.
Technological improvements
When does seasonal unemployment occur?
When industries slow or shut down for a season or make seasonal shifts in production schedules.
What happens when there is a lack of education?
People have minimum skills which don't meet those needed for today's job market.
When will many laid-off employees be rehired?
After the recession ends and the business cycle resumes upward.
A region has 350,000 unemployed people. The labor force in that region is 5,000,000. What is the unemployment rate for this region?
7%
which cause of unemployment is defined as the practice of hiring a party outside a company to perform services or create goods.
What does seasonal unemployment result of?
Harvest schedules or finding a summer job.
What is defined as a trend where countries have become more open to foreign trade and investment?
Globalization.
Fill in the blank: The demand for goods and services varies during recessions or downturns in the _____ ______.
The business cycle.
In a particular city, there are 2,000 unemployed workers. The total labor force of the city is 40,000. Calculate the unemployment rate in percentage.
2%
Which cause is generally identified by a fall in GDP in two successive quarters?
Recessions
What factor impacts migrant agricultural workers that may cause them to be unemployed?
Weather
What causes changes in consumer demand?
When consumers stop buying one product in favor of another.
What causes the demand for labor to drop as well so companies begin to lay off employees, leaving many unemployed.
Slowdown in production.
Question: If a town has 10,000 people in its labor force, with 800 actively seeking work but not currently employed, what is the unemployment rate?
8%