Unemployment
Unemployment is when people who want to work cannot find a job, and it has costs for individuals and the economy.
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Unemployment is when people who want to work cannot find a job, and it has costs for individuals and the economy.
- Types include cyclical and structural
- Rate is the percentage of the labour force
- Training can reduce it
🧠 Quick quiz
Three questions. Score 2 or more to complete the topic.
What is Unemployment?
Within Economics & Civics, which covers money, markets, business, government, law and citizenship: how societies are organised and run, this topic explains Unemployment. Economics and civics topics explain how money, markets, laws and government affect people, so each topic here pairs a clear definition with a model.
Check that you can explain Unemployment in your own words and give one example from everyday life. If you can do that, you have understood the core idea.
Understanding Unemployment helps you read the news critically and weigh up policies, choices and arguments about society.
Unemployment in detail
Unemployment is when people who are able and willing to work cannot find a job. The unemployment rate is the percentage of the labour force without work who are actively seeking it. Types include frictional (between jobs), structural (skills do not match available jobs, such as after industries decline), cyclical (during recessions) and seasonal.
Unemployment has costs: lost output, lower incomes, higher government spending on benefits, and effects on health and wellbeing. Policies include education and training, help in job searching, support for business growth and, in recessions, higher government spending. Some level of unemployment always exists, as people change jobs.
How the interactive helps you understand Unemployment
Watch the bar chart in the interactive. Use any sliders or buttons it offers to change the values and see how the bar chart responds.
Before you change anything, predict the result. Then change one value at a time and check whether your prediction was right. This is a quick way to build a correct mental model of Unemployment.
Real-life uses and examples
- Use Unemployment to weigh up the pros and costs of a policy or decision.
- Explain Unemployment to a classmate using a choice you make yourself, such as spending pocket money.
- Give a balanced answer about Unemployment by considering more than one point of view.
Common mistakes to avoid
- Confusing a short-term effect with a long-term one.
- Giving an opinion without evidence or a clear economic or civic reason.
- Learning the definition without testing it. Use the quiz and the interactive to check that you can apply the idea.
Frequently asked questions about Unemployment
What is Unemployment?
Unemployment is when people who want to work cannot find a job, and it has costs for individuals and the economy.
What are the most important points about Unemployment?
The main points are: Types include cyclical and structural; Rate is the percentage of the labour force; Training can reduce it.
Why is Unemployment useful?
Understanding Unemployment helps you read the news critically and weigh up policies, choices and arguments about society.
How can I practise Unemployment?
Open the interactive at the top of this page and change the controls one at a time. Predict the result before each change, then take the three-question quiz. A score of two or more marks the topic as complete on this device.
Which topics are related to Unemployment?
Related topics in Economics & Civics include Business Types, Break-Even, Trade and Globalisation.