Economics Unemployment Study Cards

Enhance Your Learning with Economics - Unemployment Flash Cards for quick learning



Unemployment

The state of being without a job, actively seeking employment, and willing to work.

Causes of Unemployment

1. Economic Recession: A decline in economic activity leading to reduced job opportunities.2. Technological Advancements: Automation and technological progress can lead to job displacement.3. Globalization: Outsourcing and offshoring of jobs to countries with lower labor costs.4. Lack of Skills: Inadequate education or training can make it difficult to find employment.5. Minimum Wage Laws: High minimum wages can lead to job cuts or reduced hiring.

Effects of Unemployment

1. Financial Hardship: Loss of income can lead to poverty, debt, and reduced standard of living.2. Psychological Impact: Unemployment can cause stress, anxiety, and depression.3. Social Consequences: Increased crime rates, social unrest, and strained relationships.4. Economic Costs: Reduced consumer spending, lower tax revenues, and increased government spending on welfare programs.

Unemployment Rate

The percentage of the labor force that is unemployed and actively seeking employment.

Labor Force Participation

The percentage of the working-age population that is either employed or actively seeking employment.

Unemployment Insurance

A government program that provides financial assistance to individuals who are unemployed through no fault of their own.

Government Policies

Policies implemented by the government to reduce unemployment, such as job training programs, tax incentives for businesses, and infrastructure projects.

Unemployment and Inflation

The inverse relationship between unemployment and inflation, known as the Phillips curve. When unemployment is low, inflation tends to be high, and vice versa.

Unemployment and Economic Growth

High levels of unemployment can hinder economic growth by reducing consumer spending and productivity. Conversely, economic growth can lead to job creation and lower unemployment rates.

Global Unemployment Issues

Challenges and trends in unemployment on a global scale, including youth unemployment, gender disparities, and the impact of technological advancements on job markets.