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Labour

economics

QuestionAnswer
wage drift when demand for labour exceeds the supply of labour, leading to wages to increase above the negotiated rates
reasons for different wage rates 1. Gender 2. Nature of the job 3. Training length and cost 4. Experience
Wage freeze The government putting a ban on wage increases in order to control inflation.
cyclical unemployment Unemployment as a result of a decrease in demand for goods and services
structural unemployment Unemployment as a result of industrial reorganisation, usually due to technological change rather than changes in supply &demand
Frictional unemployment occurs when people are between jobs, seeking new work
seasonal when the demand for a certain industry is only during a specific time of the year and it falls for the remainder of the year.
institutional 1. When there is a disincentive to work ie welfare is greater than wages 2. obstacles to the mobility of labour
occupational mobility The ability for someone to move from one employment to another
geographical mobility The ability to move from one place to another
Factors affecting mobility of labour 1. Language/ Cultural barriers 2. Lack of housing/ high rent 3. Not qualified 4. work permits/ gov policy
underemployment People who have work but are not working at full capacity ie) people who work a 3 day week.
What does the live register record everyone under 65 who gets jobseeker's allowance
Created by: 1801068583361003
 

 



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