IG经济 - Employment and Unemployment
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IG经济 - Employment and Unemployment
Key Terms Meaning Definition
Workforce labour force 劳动力 Labour force or working population in an economy includes the
number of unemployed and employed plus self-employed.
unemployment 失业 Unemployment occurs when people of working age are both
willing and able to work but cannot find employment.
Unemployment rate 失业率 Unemployment rate is the number of unemployed percentage of
the total workforce. (China 3.95%, America 4.1% , Oct. 2017)
Frictional 摩擦的 Frictional unemployment is the transitional unemployment that
occurs when people change jobs, due to the time delay between
leaving a job and finding or starting a new one.
Seasonal 季节的 Seasonal unemployment is caused by regular and periodical
changes in demand for certain products. For example, fruit pickers
are in high demand during the summer months while retailers
tend to hire more temporary workers during the Christmas
season. Tourism and farming also have the same issue.
technological 技术的 Technological unemployment occurs when workers lose their jobs
due to firms opting to use capital-intensive technologies. This can
cause large scale unemployment in certain industries. For
example, supermarkets in Europe introduced self-service
checkouts in 2009. Their huge success and cost savings for
supermarkets and other retailers mean that fewer workers need
to be hired.
Youth unemployment 青年失业 Youth unemployment affects the working population aged 21 or
below because they have relatively fewer skills and less
experience, so they are the most likely to be affected during an
economic downturn. (Spain 55.7% 2013)
Regional 地区的 Regional unemployment occurs when unemployment affects
specific geographical areas of the country. While busy central
business districts tend to have higher rates of employment,
remote rural areas have relatively high rates of unemployment.
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Structural 结构的 Structural unemployment occurs when the demand for products
in a particular industry falls, often due to foreign competition or
the country’s industry reform policy.
voluntary 自愿的 Voluntary unemployment occurs when workers choose not to
work. This usually exists in economies with relatively generous
welfare benefits for the unemployed as well as high rates of
income tax, thus creating disincentives to work at current market
wage rates.
classical 古典的 Classical unemployment occurs when real wage rates are set
above the market-clearing level, such as in the case of a national
minimum wage. This leads to excess supply of labour, as the
number of job-seekers exceeds the demand for labour. (draft)
cyclical 周期性的 Cyclical unemployment, also known a demand-deficient
unemployment, is the most severe type of unemployment
because it can affect every industry in the economy. It is caused
by a lack of aggregate demand, which causes a fall in national
income.
Protectionist measures 保护主义措施 Such as tariffs and quotas can be used to safeguard domestic jobs
from the threat of international competition. For example, the
Japanese government imposes up to 778% import taxes on rice -
the highest rate in the world- in order to protect agricultural job in
the country
Supply-side policies 供给侧政策 Such as investment in education and training, a reduction in trade
union powers, employment incentives, a review of welfare
benefits, which tend to have more permanent impacts on
employment make a long term effective policies in an economy.