UNEMPLOYMENT

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UNEMPLOYMENT
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BASIC CONCEPTS

• The labour force is people with a job or
  registered as looking for work.
• The participation rate is the fraction of the
  population of working age who are in the labour
  force.

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BASIC CONCEPTS

• The unemployment rate is the fraction of the
  labour force without a job but registered as
  looking for work

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INFLOWS OUTFLOWS

• INFLOWS ?
• the newly unemployed, graduates etc.
• OUTFLOWS ?
• people getting new jobs or
• quitting the labour force

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3 WAYS TO BECOME

• Job - losers
• New entrants
• Re - entrants

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LABOUR MARKET FLOWS
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TABLES
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TABLES
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TABLES
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TABLES
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1ST CLASSIFICATION BY SOURCE

• Frictional unemployment
• Structural unemployment
• Demand-deficient unemployment
• Classical unemployment

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FRICTIONAL UNEMPLOYMENT

• Frictional unemployment
• is the irreducible minimum unemployment in a
  dynamic society.

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STRUCTURAL UNEMPLOYMENT

• Structural unemployment arises from the mismatch
  of skills and job opportunities as the pattern
  of demand and supply change.

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DEMAND-DEFICIENT UN.

• Demand-deficient unemployment occurs when output
  is below full capacity

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CLASSICAL UNEMPLOYMENT

• Classical unemployment describes the unemployment
  created when the wage is deliberately maintained
  above the level at which the labour supply and
  labour demand schedules intersect

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2ND CLASSIFICATION BY BEHAVIOURAL IMPLICATIONS

• The worker is voluntarily unemployed if, at a
  given level of wages, he wishes to be in labour
  force but not yet wish to accept a job.
• A worker involuntarily unemployed would accept a
  job offer at the going wage rate.

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EQUILIBRIUM UNEMPLOYMENT
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4 REASONS WHYEQUILIBRIUM UN. RISES

• 1st skill mismatch occurs if the skills that
  firms demand differ from the skills the labour
  force possesses

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4 REASONS WHYEQUILIBRIUM UN. RISES

• 2nd rise in the generosity of unemployment
  benefit
• The replacement rate is a level of benefits
  relative to wages in work

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4 REASONS WHYEQUILIBRIUM UN. RISES

• 3rd Trade union power is measured by the ability
  of unions to co-ordinate lower job acceptances,
  thereby increasing wages but reducing employment.
  

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4 REASONS WHYEQUILIBRIUM UN. RISES

• 4th The marginal tax rate is the fraction of
  each extra pound that the government takes in
  tax.
• This creates a tax wedge between the price the
  purchaser pays and the price the seller receives.

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WORLD UNEMPLOYMENT
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UNEPLOYMENT RATE IN POLAND
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A BIT OF FACTS

• 2,8 mln unemployment people in Poland
• 15,7 of total citizens

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A BIT OF FACTS

• end of September 2007 - 2,4 mln
• 1,3 mln women
• 42,2 - live in the country

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A BIT OF FACTS

• 44 people under 25 years.
• 2,6 - university graduates
• basic unemployment benefit in Poland 503,2 zl.

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THANK YOU

• FOR YOUR ATTENTION