Employment and unemployment
4.6What the syllabus asks of you
- Definitions of employment, unemployment and full employment
- Measurement of unemployment: how unemployment is measured (labour force survey)
- Measurement of unemployment: formula for the unemployment rate
- Causes/types of unemployment: frictional unemployment
- Causes/types of unemployment: structural unemployment
- Causes/types of unemployment: cyclical unemployment
- Causes/types of unemployment: seasonal unemployment
- Consequences of unemployment: consequences of unemployment for the individual, producers/firms, the government and the economy
- Policies to reduce unemployment: the range of policies available to reduce unemployment and their effectiveness
Read the notes first
Chapter 4: Employment and unemployment
Drill this topic
Every question on Employment and unemployment, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
33 questions
1May / June 2026 · Paper 12 · Q23Show mark scheme →
A9.09%
B12%
C14.2%
D71.4%
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2Oct / Nov 2025 · Paper 12 · Q23Show mark scheme →
Aunemployment: those who want a job but cannot get one at the current wage rate; employment: those who are not in full-time education
Bunemployment: those who want a job but cannot get one at the current wage rate; employment: those who have a job at the current wage rate
Cunemployment: those without a job; employment: those who are not in full-time education
Dunemployment: those without a job; employment: those who have a job at the current wage rate
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3Oct / Nov 2025 · Paper 13 · Q23Show mark scheme →
Apossible advantage: fall in government spending on unemployment benefits; possible disadvantage: fall in labour disputes
Bpossible advantage: fall in tax revenue; possible disadvantage: fall in poverty
Cpossible advantage: rise in living standards; possible disadvantage: rise in inflation rate
Dpossible advantage: rise in output; possible disadvantage: rise in labour mobility
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4May / June 2025 · Paper 11 · Q22Show mark scheme →
Ano / no / yes
Bno / yes / yes
Cyes / yes / no
Dyes / no / no
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5May / June 2025 · Paper 11 · Q23Show mark scheme →
Aconsumer confidence
Bgovernment expenditure on state benefits
Cgovernment revenue from income tax
Dthe rate of growth of real output
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6May / June 2025 · Paper 12 · Q22Show mark scheme →
A30%
B70%
C80%
D90%
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7May / June 2025 · Paper 12 · Q23Show mark scheme →
Acyclical
Bfrictional
Cregional
Dstructural
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8Oct / Nov 2024 · Paper 12 · Q21Show mark scheme →
Aa permanent decrease in the demand for labour
Ba permanent decrease in the supply of labour
Ca temporary decrease in the demand for labour
Da temporary decrease in the supply of labour
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9Oct / Nov 2024 · Paper 13 · Q22Show mark scheme →
Athe number of workers on the national minimum wage
Bthe proportion of women in the labour force
Cthe unemployed population
Dtrade union membership
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10May / June 2024 · Paper 11 · Q22Show mark scheme →
Ayes / no / no
Byes / no / yes
Cyes / yes / no
Dyes / yes / yes
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11May / June 2023 · Paper 11 · Q22Show mark scheme →
AThe country is experiencing a period of negative economic growth.
BThe country is experiencing a period of positive economic growth.
CThe country is moving from producing primary sector goods to secondary sector goods.
DThe country is moving towards more flexible labour markets.
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12May / June 2023 · Paper 12 · Q22Show mark scheme →
Adownward pressure on wage rates
Bincrease in welfare benefit payments
Crise in absolute poverty
Drise in income tax revenue
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13Oct / Nov 2022 · Paper 12 · Q21Show mark scheme →
Athe benefits and allowances paid by the government to people without a job
Bthe number of people without a job but seeking a job as a percentage of the labour force
Cthe rate of change in the number of people who have not worked over the last year
Dthe total number of people not working when the data was calculated
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14Oct / Nov 2022 · Paper 12 · Q23Show mark scheme →
Afalling economic growth, falling inflation
Bfalling economic growth, rising inflation
Crising economic growth, falling inflation
Drising economic growth, rising inflation
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15Oct / Nov 2022 · Paper 13 · Q21Show mark scheme →
Ahigher output
Bhigher government budget deficit
Chigher self-esteem
Dhigher inflation
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16Oct / Nov 2021 · Paper 12 · Q23Show mark scheme →
Adecrease general taxation and decrease the rate of interest
Bdecrease general taxation and increase the rate of interest
Cincrease general taxation and decrease the rate of interest
Dincrease general taxation and increase the rate of interest
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17Oct / Nov 2021 · Paper 13 · Q23Show mark scheme →
Adecrease general taxation and decrease the rate of interest
Bdecrease general taxation and increase the rate of interest
Cincrease general taxation and decrease the rate of interest
Dincrease general taxation and increase the rate of interest
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18Oct / Nov 2020 · Paper 12 · Q20Show mark scheme →
Aredundant unskilled workers seeking alternative work
Bseasonal agricultural workers in out-of-season periods
Cstudents over 18 years continuing with full-time education
Dthose who have left school and cannot get a job
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19May / June 2020 · Paper 11 · Q20Show mark scheme →
Acyclical
Bfrictional
Cseasonal
Dstructural
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20May / June 2020 · Paper 12 · Q20Show mark scheme →
Acyclical unemployment
Bfrictional unemployment
Cstructural unemployment
Dtechnological unemployment
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21Oct / Nov 2019 · Paper 12 · Q22Show mark scheme →
AThe incentive to earn an income is lower for that age group.
BTheir wages are lower than those of adults.
CThey lack both work experience and the necessary skills.
DThey prefer leisure activities to long working hours.
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22Oct / Nov 2019 · Paper 13 · Q22Show mark scheme →
Acyclical
Bfrictional
Cseasonal
Dstructural
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23May / June 2019 · Paper 12 · Q19Show mark scheme →
Aif cheaper imports of steel are improving the balance of payments
Bif economic growth is increasing due to the success of other industries
Cif redundant steel workers can easily be retrained
Dif unemployment in steel producing areas is increasing
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24May / June 2019 · Paper 12 · Q22Show mark scheme →
Aunemployment caused by a general fall in economic activity
Bunemployment caused by the time of year
Cunemployment caused by wages being too high
Dunemployment caused by workers searching for jobs
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25Oct / Nov 2018 · Paper 12 · Q22Show mark scheme →
AEach recession lasted for more than two years.
BRecessions occurred at regular intervals.
CThe unemployment rate peaked in a recession period.
DThe unemployment rate rose during recession periods.
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26Oct / Nov 2018 · Paper 12 · Q23Show mark scheme →
Acyclical / structural
Bfrictional / seasonal
Cseasonal / cyclical
Dstructural / frictional
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27Oct / Nov 2018 · Paper 13 · Q22Show mark scheme →
AEach recession lasted for more than two years.
BRecessions occurred at regular intervals.
CThe unemployment rate peaked in a recession period.
DThe unemployment rate rose during recession periods.
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28Oct / Nov 2018 · Paper 13 · Q23Show mark scheme →
Acyclical / structural
Bfrictional / seasonal
Cseasonal / cyclical
Dstructural / frictional
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29Oct / Nov 2017 · Paper 13 · Q23Show mark scheme →
Abusiness confidence
Bconsumer spending
Cgovernment revenue
Dgovernment welfare payments
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30May / June 2017 · Paper 12 · Q19Show mark scheme →
Adecrease general taxation and decrease the rate of interest
Bdecrease general taxation and increase the rate of interest
Cincrease general taxation and decrease the rate of interest
Dincrease general taxation and increase the rate of interest
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31Oct / Nov 2016 · Paper 12 · Q17Show mark scheme →
ASome people may have emigrated.
BSome people may have gone back to education.
CSome people may have re-entered the labour force.
DSome people may have retired early.
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32May / June 2016 · Paper 11 · Q29Show mark scheme →
AThe balance of payments on current account of countries exporting weapons would immediately improve.
BThe price of existing weapons would fall.
CThere would be a risk of structural unemployment in countries that are major producers of weapons.
DThere would be no overall effect on the balance of payments as countries would produce their own weapons.
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33May / June 2016 · Paper 12 · Q29Show mark scheme →
AThe balance of payments on current account of countries exporting weapons would immediately improve.
BThe price of existing weapons would fall.
CThere would be a risk of structural unemployment in countries that are major producers of weapons.
DThere would be no overall effect on the balance of payments as countries would produce their own weapons.
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