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Employment

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Question 6

An economy uses both the Labour Force Survey (LFS), based on the International Labour Organisation (ILO) definition, and the Claimant Count to measure unemployment. Which of the following would lead to the LFS measure of unemployment being higher than the Claimant Count measure?

A rise in the number of discouraged workers who have stopped looking for work but continue to receive unemployment-related benefits

An increase in the number of individuals who claim unemployment benefits while working in the shadow economy

An increase in the number of people who are actively seeking work but are disqualified from claiming benefits due to having personal savings above the capital limit

A growth in the gig economy leading to more people working part-time who prefer full-time work and do not qualify for benefits

Employment Questions

  1. A Level
  2. /Economics
  3. /Employment