Key Concepts
What is full employment?
This is when everyone who wants a job can find one at current wage levels. 4% is considered full employment.
What is the Live Register?
This Irish measure that counts those receiving jobseeker-type payments.
What is structural unemployment?
This type occurs when skills don’t match available jobs.
This term describes Ireland’s rapid growth from the mid-1990s to 2007.
Celtic Tiger
This falls when unemployment rises due to lower incomes.
Consumer spending / aggregate demand
This includes everyone working plus those actively seeking work
Labour Force
This organisation carries out the LFS in Ireland.
CSO
This type occurs when people are between jobs.
Frictional unemployment
This sector masked employment declines in other sectors before 2008. This was also the sector which had the highest numbers of employment back then
Construction industry
This government cost increases when unemployment rises.
Social welfare payments
What is the workforce?
This refers to all those currently employed.
What is the hidden economy?
This term describes people working but still claiming welfare illegally.
What is seasonal unemployment
This type occurs in industries like tourism during off-season periods.
This event caused unemployment to rise above 15% in Ireland.
2008 financial crisis
This increases for government when more people work.
Income from tax
What is the formula is used to calculate unemployment as a percentage.
(Number unemployed ÷ Labour force) × 100
Which is more reliable, the LFS or the Live Register and why?
The LFS because it is based on a large, representative household survey and only includes people who are actively seeking and available for work, making it more accurate than the Live Register, which can overestimate unemployment.
This type is caused by a downturn in the economy.
Cyclical unemployment
Who are the Troika (IMF, ECB, European Commission)?
This group took control of Ireland’s fiscal policy during the crisis.
What are two negative effects of high employment
Skilled labour shortages
Increased wage demands
Strain on public infrastructure / public services
Labour shortages in low-paid sectors
Rising inflation
Worsening balance of payments