What is your definition of unemployment?

Presentation on theme: "What is your definition of unemployment?"— Presentation transcript:

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2 What is your definition of unemployment?
What do you know about unemployment? Write it on your post-it note: What is your definition of unemployment? Are you worried? What types are there? What causes it? Why is it important? What trends are there? Advantages? What impact does it have? Link to the economy? On one side: Definition Disadvantages? On the other side: Everything else

3 What you need to know

4 Employment & Unemployment:
Employment: - the total number of people with a job (includes full-time, part-time, working for a company, self-employed) Unemployment: - the total number of people able, available and willing to work at the going wage rate but who cannot find work despite an active search - expressed as a percentage of the labour force

5 Underemployment Those whose employment status is less than desired, typically working in a part time job when they want a full time job, or when their skills are not being fully utilised in their current job

6 New stats show unemployment in the UK is being replaced by chronic 'underemployment'
The official rate of unemployment is 4.3% of all workers, or 1.46 million people. That is a historic low not seen since 1975, according to the ONS. Normally it would be cause for celebration. But the percentage of workers who want more hours, or part-time workers who want better jobs, is nearly double the unemployment rate, at about 9.7%, or 3.3 million people, according to the ONS. Since 2002, the number of insecure, part-time, and under-paid jobs has increased, according to the ONS, while official unemployment has declined to almost negligible levels — technically now below the level of full employment. The stats thus suggest that chronic "underemployment" is slowly replacing the role outright joblessness used to play in the labour market, and that a major source of inequality in Britain today is not the traditional plight of those on the dole, but the divide between those in full-time jobs and workers stuck in poorly paid, part-time gigs. Sep. 19, 2017, 4:10 PM

7 The Labour Force Survey
Conducted according to International Labour Organisation (ILO) methodology so internationally comparable Survey of about 45,000 households with 100,000 people People are counted as unemployed if they are aged 16 and above and are: without a job, have been actively seeking work in the past four weeks and are available to start work in the next two weeks, or out of work, have found a job and are waiting to start it in the next two weeks Includes people who are unemployed but are not necessarily claiming benefit (may not qualify)

8 The Claimant Count A monthly measure which counts only those people who are claiming Jobseeker's Allowance (or claiming Universal Credit and are unemployed) People who can claim JSA must: Be available, and actively looking for work Be 18, but under State Pension age (with possible exceptions) Not be in full time education Currently work less than 16 hours per week (on average)

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10 Why is the JSA different to ILO?
Some people may not claim JSA even when they are eligible to. Doesn’t include those looking to return to work after having a child Doesn’t include those looking for part time work and not full time work

11 Can they claim Jobseeker’s Allowance?
Student in full time education Not entitled

12 Can they claim Jobseeker’s Allowance?
Recently made redundant 43 year old steel worker As long as he has contributed national insurance or qualifies for income based

13 Can they claim Jobseeker’s Allowance?
Person with savings of £12000 Only when you have more than £16,000 – you can’t claim! And may still qualify for 6 months with more than £16,000

14 Can they claim Jobseeker’s Allowance?
Housewife/husband who does not wish to work

15 Research Research UK data – both JSA & ILO for past 10 years – compare to other European countries