2.  Working population in the UK is 30 m  There are people with no jobs but who are actively seeking work but can’t find work.  International Labour Organisation (ILO)  Claimant Count : individuals who claim Jobseekers allowance.  CC will always be lower than ILO

3.  Look at Figure 34.1 on page 156

4.  Cyclical Unemployment: In a downtown or recession demand for goods and services falls and unemployment will increase.  Structural Unemployment:  A) Sectoral Unemployment : decline in industry  B) Technological Unemployment: as technology improves people lose jobs as machines can do the job.  C) Regional Unemployment: certain areas in the UK have high unemployment. E.g. North East UK

5.  Frictional Unemployment: people are unemployed as they move from one job to another  Seasonal Unemployment: Summer jobs and seasonal work  Voluntary unemployment: don’t like the work on offer or will not accept the wage offered.

6.  Cost to the Individual: lose of income can led to lose of homes or family break-ups  Cost to business: fall in demand due to unemployment particularly in luxury goods. Spare capacity and paying redundancy also occurs.  Cost to economy: GDP decreases, tax revenues fall.  Cost to local communities: closure of a local industry destroys a community.

7.  Question 1 on page 158  Question 2 on page 159  Economics in Practise on page 159