Employment and Unemployment
Employment and Unemployment
Employment and Unemployment
Labour force – the working population of an economy, i.e. all people of working
age who are willing and able to work. Dependent population – people not in the
labour force and thus depend on the labour force to supply them with goods
and services to fulfill their needs and wants. This includes students in
education, retired people, stay at home parents, prisoners or similar
institutions as well as those choosing not to work.
Employment is defined as an engagement of a person in the labour force in
some occupation, business, trade, or profession.
Unemployment is a situation where people in the labour force are actively
looking for jobs but are currently unemployed.
All governments have a macroeconomic objective of maintaining a low
unemployment rate.
Full Employment is the situation where the entire labour force is employed. That
is, all the people who are able and willing to work are employed –
unemployment rate is 0%.