Economics 0455 · IGCSE · Employment and unemployment

Employment and unemployment — practice question

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.
(a)[2]

Define what is meant by unemployment.

(b)[4]

Explain two causes of wage differences between separate economies.

(c)[6]

Analyse how a recession in one country may lead to unemployment in another country.

(d)[8]

Discuss whether the economic gains of immigration into countries such as the UK and Germany are greater than the economic drawbacks.

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