Employment and Unemployment SAQ

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What is full employment?

A situation where everyone who wants a job can find one at existing wage levels, typically at an unemployment rate of 4%.

What is employment?

The condition of being engaged in work in return for payment.

Define unemployment.

The state of not working but being available for and actively seeking work.

What is the workforce?

All those who are employed. Signup and view all the answers

Define labour force.

All those available for work and actively seeking work, including those currently employed and unemployed. Signup and view all the answers

How is the unemployment rate calculated?

It is the proportion of the labour force that is currently unemployed. Signup and view all the answers

What is underemployment?

When a worker’s skills or time are not being utilized to their full potential. Signup and view all the answers

What is the Live Register?

A measure of all those receiving unemployment-related social welfare payments. Signup and view all the answers

Why is the Live Register not an accurate measure of unemployment?

It includes part-time workers, individuals in the hidden economy, and those who might not be actively seeking work. Signup and view all the answers

What is one economic implication of rising unemployment?

Reduced consumption expenditure and less investment due to lower aggregate demand. Signup and view all the answers

How does rising unemployment affect government finances?

Increases social welfare costs and decreases government revenue from taxes, potentially increasing the budget deficit. Signup and view all the answers

How does unemployment influence emigration?

High unemployment can lead to increased emigration as individuals seek job opportunities abroad. Signup and view all the answers

What survey replaced the Quarterly National Household Survey in 2017?

The Labour Force Survey (LFS). Signup and view all the answers

Why is the Labour Force Survey considered more accurate than the Live Register?

It provides a larger sample size and more detailed information, despite a time lag in publication. Signup and view all the answers

What is structural unemployment?

Unemployment resulting from a mismatch between the skills of the unemployed and the available jobs. Signup and view all the answers

Define frictional unemployment.

Unemployment that occurs when individuals are between jobs or entering the labour force for the first time. Signup and view all the answers

What is seasonal unemployment?

Unemployment that occurs when individuals work in industries with seasonal demand, such as tourism. Signup and view all the answers

What causes cyclical unemployment?

A reduction in demand for goods and services associated with economic downturns Signup and view all the answers

How can the government help reduce unemployment?

By cutting VAT on certain goods/services, providing subsidies to employers, offering retraining opportunities, promoting tourism and exports, and reducing business costs. Signup and view all the answers

What is the JobsPlus Scheme?

A program providing grants up to €10,000 for employers hiring workers who had been on the Live Register. Signup and view all the answers

How do high interest rates affect employment?

They can reduce business investment and hiring, leading to higher unemployment. Signup and view all the answers

What impact can the relocation of multinational corporations (MNCs) have on employment?

It can lead to job losses in the country they relocate from. Signup and view all the answers

What is the effect of high employer's PRSI on employment?

It increases labor costs, which can discourage hiring and lead to higher unemployment. Signup and view all the answers

How did the 2008 financial crisis affect cyclical unemployment in Ireland?

It caused a significant increase in cyclical unemployment due to the economic downturn. Signup and view all the answers

Why might some individuals on the Live Register be considered "voluntarily unemployed"?

They might not be actively seeking work, even though they are receiving unemployment-related social welfare payments. Signup and view all the answers