How has the UK Labour Government kept Unemployment at a Minimum?
Introduction
In this assignment I will be analysing the macroeconomic concept of unemployment and how within the UK it has been reduced.
Firstly I will produce an in-depth report on unemployment, what is unemployment and how is it measured. I shall then study the various types of unemployment and causes of such unemployment.
I shall be analysing the economic effects of unemployment and how this can affect the economy. I shall identify the costs and benefits of unemployment and then assess the effects and impacts within the economy.
I shall also identify various types of policies used by the UK Labour government to overcome unemployment.
Unemployment
The unemployed are those registered as able, available and willing to work at a going wage rate in any suitable job who cannot find employment.
Unemployment measures the number of people who are out of work at a given period of time. However, each month workers lose their jobs while others find new employment. Unemployment will fall if the flow of workers finding employment is greater than the number of workers losing their jobs.
Unemployment is a problem encountered when there are people able and willing to work but unable to find jobs. This leads to a loss of potential output, which cannot be regained.
Unemployment is measured in two different ways, one being the Claimant Count and the other being the Labour Force Survey.
The Claimant Count
The Claimant Count measures unemployment, and includes those people who are eligible to claim Job Seekers Allowance (JSA). Those who satisfy the criteria to receive JSA for six months and then move on to special employment measures are recorded by the claima ...