Unemployment

Lost output, lower productivity, increased government spending on welfare, lower tax revenue.

Frictional, seasonal, and structural unemployment.

Increased crime, family breakdown, increased poverty, social exclusion.

Unemployment due to seasonal changes in demand for labour.

A labour market diagram with a leftward shift in the demand for labor.

Short-term unemployment as workers transition between jobs.

Unemployment due to a mismatch between workers’ skills and job requirements - sectoral, regional and technological.

Due to the decline of certain industries in specific areas.

Investment in education and retraining programs.

People who are employed plus those actively seeking work.

It can lead to a surplus of labour if set above the equilibrium wage.

The percentage of the labor force that is actively seeking work but unable to find a job.

Unemployment not reflected in official figures, e.g., discouraged workers.

Unemployment caused by a fall in aggregate demand in the economy.

Unemployed ÷ Labor force × 100

The sum of structural, frictional, and seasonal unemployment when the economy is at full employment.

Stress, loss of income, permanent deskilling, reduced self-esteem.

Discouraged workers and underemployment are not fully captured in official statistics.

A labour market diagram showing demand shifting inwards or an AD/AS diagram showing a deflationary gap.