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Macroeconomics
Quick questions on Unemployment - TCE Economics (Tasmania)
2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is measuring unemployment?Show answer
The Australian Bureau of Statistics measures unemployment through a monthly Labour Force Survey. To be counted as unemployed a person must be of working age, without work, available to start, and actively looking for work. The unemployment rate expresses the unemployed as a percentage of the labour force.
What is the costs of unemployment?Show answer
Unemployment is costly on both economic and social grounds. Economically, it means lost output (the economy produces inside its production possibility frontier), lower incomes and reduced tax revenue, while government spends more on welfare. Skills can also deteriorate, lowering long-term productivity. Socially, prolonged unemployment is linked to poorer physical and mental health, family stress, crime and social exclusion, with costs that fall hardest on the long-term unemployed and on disadvantaged regions.
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