Podcast
Questions and Answers
What is the Live Register a measure of?
What is the Live Register a measure of?
Why is the Live Register not an accurate measure of unemployment?
Why is the Live Register not an accurate measure of unemployment?
Which of the following individuals would be included in the Live Register?
Which of the following individuals would be included in the Live Register?
What is an example of someone who might be ‘voluntarily unemployed’?
What is an example of someone who might be ‘voluntarily unemployed’?
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Which of the following is NOT a limitation of the Live Register?
Which of the following is NOT a limitation of the Live Register?
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What happens to consumption expenditure when unemployment rises?
What happens to consumption expenditure when unemployment rises?
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How does a rise in unemployment affect government finances?
How does a rise in unemployment affect government finances?
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What is a consequence of high unemployment on individuals and households?
What is a consequence of high unemployment on individuals and households?
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Why is emigration considered a consequence of high unemployment?
Why is emigration considered a consequence of high unemployment?
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What is a consequence of high unemployment on the economy?
What is a consequence of high unemployment on the economy?
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Study Notes
The Live Register
- Measures individuals receiving unemployment-related social welfare payments, such as jobseekers allowance
- Not an accurate measure of unemployment due to various limitations
Limitations of the Live Register
- Includes individuals in part-time employment who receive partial social welfare payments for days not worked
- Includes a small number of individuals in full-time employment in the hidden economy who illegally receive social welfare payments
- May include individuals who are 'voluntarily unemployed' and not actively seeking work
Implications of Unemployment
The Economy
- A rise in unemployment leads to reduced consumption expenditure due to a fall in disposable incomes, causing consumers to reduce spending and save more.
- Reduced aggregate demand results in less investment, driven by negative expectations.
Government Finances
- Social welfare costs, such as Job Seeker's Allowance, increase due to unemployment.
- Government revenue from direct and indirect taxation falls due to decreased economic activity.
- The government budget deficit rises as a result of reduced revenue and increased social welfare costs.
Individuals/Households
- Unemployment serves as a push factor, leading to emigration and acting as a safety valve for the economy (reducing social welfare payments).
- Brain drain occurs as educated individuals leave to work abroad.
- Households struggle to pay for basic necessities due to high unemployment.
Household Incomes
- Poverty levels rise due to high unemployment, leading to increased inequalities.
- Households face difficulties, with some even having their homes repossessed (as seen in the 2008 crisis).
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Description
Learn about the Live Register, a method of measuring unemployment rates, and its limitations, including issues with part-time employment and fraudulent claims.
