Employment and unemployment

During 2014, an announcement was made about a large new rail link to be financed by central and regional government. The project would require redevelopment of an urban district, create $14\,000$ jobs, and make possible the construction of $2000$ homes and office space for private firms. What economic concepts are shown directly in the statement above?

Feb/March 2016

From 2008 to 2014, Greece’s Gross Domestic Product decreased by 25%. Many sole proprietors and other businesses closed down. As a result, unemployment climbed to 28%. The Government cut its spending and was being urged by the International Monetary Fund to lower its corporation tax (the tax on firms’ profits).

Feb/March 2016

In 2014, the inflation rate in the United States of America (US) stood at 2.0%. US unemployment was 6.1%, which was the lowest level for six years. The economy had still not reached full employment, although not every job vacancy had been filled. A larger share of US students was entering university. Investment, meaning expenditure on capital goods, was rising.

Feb/March 2016

What might lead to a sudden fall in the working population?

Feb/March 2017

Which pairing of government policies would be most likely to cut unemployment?

Feb/March 2018

Which policy would be most likely to lower unemployment over the short run?

Feb/March 2019

What is one example of a person who became unemployed due to structural unemployment?

Feb/March 2019

The table gives details of a country’s labour market. Population size: $2\,000\,000$ Labour force size: $1\,200\,000$ Number of employed: $900\,000$ Number of full-time students: $100\,000$ What is the unemployment rate in this country?

Feb/March 2020

Which government policy would be most likely to decrease structural unemployment?

Feb/March 2023

Which one of these people would be classified as unemployed?

Feb/March 2024

Nigeria operates a mixed economic system. In January 2023, Nigeria recorded unemployment of 33%, creating several costs. Its inflation rate of 22% produced various effects on firms in the country. During 2022 and at the beginning of 2023, Nigerians raised their demand for foreign currency.

Feb/March 2025

The table presents the unemployment rate in three developed economies in June 2013. What is the main cause of high unemployment rates in developed economies during periods of recession?

May/June 2015

During 2014, farmers' crops were ruined by two months of poor weather. As a consequence, they hired fewer people for harvest work in that year. What type of unemployment would this lead to?

May/June 2015

Pakistan’s annual inflation rate and economic growth rate both declined from 2012 to 2013. Some economists argued that the Government ought to reduce government spending in order to push inflation lower still. If inflation fell, economic activity might rise and unemployment could drop.

May/June 2015

Which combination of policies would be the most effective if a government wanted to raise the level of employment?

May/June 2016

It is predicted that India’s working-age population, aged 15 to 64, will increase by 125 million from 2015 to 2025 and then by another 103 million over the next decade. However, people of working age are not all employed or looking for work. Changes in population and the labour force influence how well a government can meet its economic aims.

May/June 2016

If a government wants to increase employment, which policy combination would be the most effective?

May/June 2017

A government in a developing country has provided additional funding to encourage trade in rural areas by supporting the opening of small shops. What is likely to rise as a consequence?

May/June 2017

From 2009 to 2014, Delaware was the sole US state where earnings fell. Over that same span, it also had unemployment below the national average and a larger share of workers in trade unions. Looking ahead to the next twenty years, the state is predicted to be among the fastest-ageing populations in the USA.

May/June 2017

Spain has experienced one of Europe's highest unemployment rates. In addition, by 2015, 3.5 million of the unemployed had been without work for at least a year. To cut unemployment and poverty, the Spanish Government has used several policy measures, including higher government spending. It has also attempted to help firms make their products’ supply more elastic.

May/June 2017

How is frictional unemployment described?

May/June 2019

It was forecast that world unemployment would increase by more than two million in 2017. However, unemployment rates differ from country to country. To cut unemployment, some governments rely on fiscal policy measures, while others choose supply-side policy measures. Trade protection can also affect the unemployment rate.

May/June 2019

In 2018, the US recorded its lowest unemployment rate for 18 years. Cyclical unemployment was very low, and inflation was low too. The US also saw labour productivity rise. Even so, it was less successful at reducing poverty. In 2018, about 12% of Americans were living in poverty.

May/June 2021

In some large Canadian cities such as Toronto, Vancouver and Montreal, cyclical unemployment sits below the national average. This may stem from higher government spending and tax cuts in those cities. Even so, productivity is low. There are also worries that structural unemployment could rise because some industries cannot compete with more efficient foreign firms.

May/June 2021

What is most likely to result in an immediate reduction in the size of the labour force?

May/June 2022

What is most likely to lead to an immediate reduction in the size of the labour force?

May/June 2022

Which factor is most likely to cause structural unemployment to increase in a country?

May/June 2023

What is a probable effect of a reduction in unemployment?

May/June 2023

The diagrams illustrate Italy’s unemployment rate and GDP per head. At what point do Italy’s unemployment rate and GDP per head increase together?

May/June 2023

What conditions must be satisfied for a worker to be classified as unemployed?

May/June 2024

Which kind of unemployment is generally considered by economists to be the least serious for the economy?

May/June 2024

A government uses the labour force survey method to measure unemployment. What must a person satisfy under this method in order to be classed as unemployed?

May/June 2025

What is most likely to increase when employment levels decline in a high-income economy?

May/June 2025

During 2020, in order to stop a pandemic from spreading, many governments shut restaurants and cafés for a limited period. What macroeconomic effect could result from such a policy?

May/June 2025

A school leaver cannot get a job straight away after finishing education. What kind of unemployment is this?

May/June 2025

A country's unemployment rate rose from $3.6\%$ to $4.2\%$ over one year. What could the effects be on tax revenues and welfare payments?

May/June 2025

Factory owners put money into technologically advanced industrial production by constructing new large-scale, energy-efficient factories. What is one negative consequence of this for people living nearby?

May/June 2025

Country X calculates unemployment by using the number of people who are claiming unemployment benefit. Why could this approach lead to an underestimate of unemployment?

May/June 2025

In 2022, over 250,000 workers, doctors among them, moved out of Sri Lanka to take jobs overseas. This mainly stemmed from economic difficulties, such as inflation reaching 50% and worries that unemployment could increase. The Sri Lankan Government raised direct taxation, and it also urged some public-sector employees to go overseas for a temporary period. Workers abroad often transfer money back to their family members at home.

May/June 2025

What is likely to decrease when a country’s unemployment rate decreases?

Oct/Nov 2015

Brazil’s economy faced problems in 2013. Its inflation rate moved above the Central Bank’s target. Over two-thirds of the items used to work out the inflation rate became more expensive. The rate of economic growth fell and fewer jobs were being created. As the labour force expands, additional jobs must be generated to prevent unemployment rising. As free trade expands, wider free trade could improve Brazil’s economic performance.

Oct/Nov 2015

During 2015, an extra $70000$ people became unemployed, yet overall employment increased by $75000$. What might account for this?

Oct/Nov 2016

A newspaper states that an economy has experienced an economic slump. What immediate effect would an economist anticipate?

Oct/Nov 2016

The unemployment rate in Wales declined from 8.2% in March 2013 to 6.8% in March 2014. One in four workers in Wales is employed in the public sector. A large share of workers are employed by multinational companies, including a Japanese car producer and a South Korean electronics firm.

Oct/Nov 2016

What is most likely to fall as employment rises?

Oct/Nov 2017

What is likely to decrease when the unemployment rate falls?

Oct/Nov 2017

The diagram illustrates the unemployment rate and the intervals of recession in a country from $1978$ to $2012$. What conclusion can be drawn from the diagram?

Oct/Nov 2018

A country saw its normal rise in the unemployment rate in August. Sadly, this was then followed by job losses caused by the usual fall in world economic activity. Which types of unemployment were present?

Oct/Nov 2018

The diagram illustrates the unemployment rate and the recession periods in a country from 1978 to 2012. What can be concluded from the diagram?

Oct/Nov 2018

A country saw the normal August rise in its unemployment rate. Sadly, this was then followed by job losses caused by the usual decline in worldwide economic activity. Which types of unemployment occurred?

Oct/Nov 2018

The diagram illustrates the unemployment rate and the recession periods in a country from 1978 to 2012. What can be concluded from the diagram?

Oct/Nov 2018

A country recorded its usual rise in the unemployment rate in August. This was then, regrettably, followed by job losses caused by the regular fall in global economic activity. Which types of unemployment occurred?

Oct/Nov 2018

What is the most likely consequence of increasing the retirement age in a country?

Oct/Nov 2018

In a recent recession across Europe, Spain's unemployment rate rose above 25%. As a result, many people left Spain for better-paid European economies such as Germany and the UK. This produced both opportunities and difficulties in countries where immigration exceeded emigration.

Oct/Nov 2018

Liberia, a country in West Africa, has encountered several major difficulties in recent years. These have included a civil war and, in 2014, the Ebola epidemic breaking out. There have also been gains. Unemployment stood at 85% in 2004 but had dropped to 4% by 2016. This fall has affected both emigration and wages. Workers have been paid more, although some economists believe the higher pay has pushed up the country’s inflation rate, which was 8% in 2016. The country has a reliable supply of drinking water and a climate that is suitable for agriculture. More than 70% of the labour force is now employed in agriculture. The country’s main exports are rubber, iron ore, timber and gold. A US multinational company (MNC) operates the world’s largest single natural rubber farming business in Liberia. Rubber prices fell by 75% between 2011 and 2016. Global supply of rubber was greater than demand because several countries brought in import restrictions on rubber. Faced with the lower price, the US MNC reduced output, yet it still recorded a loss. The MNC does not wish to fail and is attempting to stay in business by cutting costs. In the long term it aims to maximise profits. When some of its 7000 workers retire, they will not be replaced. The MNC has adopted new production methods and diversified into cocoa and coffee growing. The Liberian government is giving subsidies to local rubber farmers so that they can purchase new equipment and use improved farming methods. Even though the situation is difficult, some local Liberian rubber farmers are expanding their operations by buying more land. Others are diversifying by using timber from the rubber trees to produce furniture. Alongside support for its rubber farmers, the Liberian government is also promoting growth in the secondary and tertiary sectors. Between 2014 and 2016 it raised spending on healthcare, but this came at the expense of a number of public sector investment projects. Table 1 shows a comparison of infant mortality rate and healthcare spending per person in selected countries in 2015.

Oct/Nov 2018

When unemployment is high throughout the whole labour force, the unemployment rate in an economy is frequently greatest among people aged $16$-$19$. Which statement explains why $16$-$19$ year-olds may struggle to get a job?

Oct/Nov 2019

What type of unemployment arises when demand for the products of an industry falls permanently?

Oct/Nov 2019

From 2007 to 2017, average wages in China tripled, whereas they declined in Brazil. The increase in average wage in China was especially strong in the tertiary sector. Farm workers experienced a more modest rise. In June 2017, unemployment in China was only 4% compared with 3.5% in Brazil. Although unemployment was lower, China’s inflation rate was below that of Brazil.

Oct/Nov 2019

Several governments within the European Union are seeking to cut unemployment. What needs to rise in order to make this happen?

Oct/Nov 2020

Which group should be excluded from the measurement of unemployment?

Oct/Nov 2020

The diagrams display Italy’s unemployment rate and GDP per head. In which period do Italy’s unemployment rate and GDP per head increase together?

Oct/Nov 2020

Which mix of policy measures is most likely to raise the level of employment?

Oct/Nov 2021

Which combination of policy measures is most likely to raise the level of employment?

Oct/Nov 2021

Why could measures aimed at reducing unemployment also lead to higher inflation?

Oct/Nov 2021

Which change in an economy’s labour market encourages economic growth?

Oct/Nov 2021

Which mix of policy measures is most likely to raise the level of employment?

Oct/Nov 2021

A shop employee lost their job because self-service checkouts were introduced. What type of unemployment is this?

Oct/Nov 2022

What does the term unemployment rate mean?

Oct/Nov 2022

The table illustrates changes in economic growth and inflation. Which of these changes are most likely to be caused by increasing unemployment?

Oct/Nov 2022

What is the most likely result of higher unemployment?

Oct/Nov 2022

During 2019, Russia's unemployment rate stood at 4.6%. Russia had previously reached full employment. Its government wants unemployment to be lower. In 2018, the Russian government reduced spending, and this may have pushed poverty up. In both 2018 and 2019, the government kept its income tax rate unchanged. Russia uses a proportional tax rate system.

Oct/Nov 2022

How is full employment generally understood?

Oct/Nov 2023

The table presents the unemployment rate in three developed economies during one year. What is the principal cause of high unemployment rates in developed economies during recession periods?

Oct/Nov 2023

Bus drivers are paid a wage of $ $15\,000 $ per year. The government brings in a national minimum wage. Under which circumstances will the greatest number of bus drivers lose their jobs because of the minimum wage?

Oct/Nov 2024

The table presents a selection of labour-market indicators for an economy in year 1 and year 2. From the table, which type of unemployment is most likely in year 2?

Oct/Nov 2024

Why does cyclical unemployment occur in a recession?

Oct/Nov 2024

What is measured by the labour force survey (LFS)?

Oct/Nov 2024

In December 2021, unemployment in the United Kingdom (UK) dropped to 4.1%. Under normal market forces, this lower unemployment would usually be expected to push wages up. Even so, workers’ living standards did not rise. New international trade deals were not arranged quickly enough to make up for the fall in trade between the UK and the European Union.

Oct/Nov 2024

An economy that is operating on its production possibility curve (PPC) goes into a recession, creating unemployment. As the recession becomes more severe, some unemployed workers emigrate to seek jobs overseas. On a diagram of the economy's PPC, how are these recession effects represented in the short-term and the long-term?

Oct/Nov 2025

The table illustrates employment trends in selected industries in two years. How did the employment patterns alter between year 1 and year 2?

Oct/Nov 2025

What are the correct meanings of unemployment and employment in relation to the number of people of working age?

Oct/Nov 2025

A country sees unemployment drop substantially. What is one possible benefit and one possible drawback of this decrease?

Oct/Nov 2025

Source material: Japan’s labour shortages

Oct/Nov 2025