Employment/unemployment
9.3What the syllabus asks of you
- definition of full employment
- equilibrium and disequilibrium unemployment (including hysteresis)
- voluntary and involuntary unemployment
- natural rate of unemployment: definition
- natural rate of unemployment: determinants
- natural rate of unemployment: policy implications
- patterns and trends in (un)employment
- mobility of labour: forms of labour mobility: geographical and occupational
- mobility of labour: factors affecting labour mobility
- policies to reduce unemployment and their effectiveness
Drill this topic
Every question on Employment/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.
18 questions
1May / June 2026 · Paper 32 · Q17Show mark scheme →
Atechnological developments leading to a mismatch between the skills of workers and the requirements of employers
Bthe introduction of minimum wage legislation
Cworkers delaying searching for jobs because they have enough savings
Dworkers losing their jobs because of a general decline in economic activity
Mark scheme
2Oct / Nov 2025 · Paper 33 · Q15Show mark scheme →
Aan increase in government expenditure on goods and services
Ban increase in government expenditure on training schemes to address skill shortages
Can increase in the period when the unemployed are eligible for welfare benefits
Dan increase in the minimum wage
Mark scheme
3May / June 2025 · Paper 31 · Q16Show mark scheme →
Apeople who become temporarily unemployed because it takes a short period of time to find a job after they leave school
Bpeople who become unemployed when there is a recession but who will find employment as the economy comes out of recession
Cpeople who become unemployed for a long period of time due to a loss of job skills and work experience while unemployed
Dpeople who become unemployed when established firms close and new firms are created as technology advances
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4May / June 2025 · Paper 31 · Q18Show mark scheme →
Aeducation and training
Bimmigration controls
Cprice of housing
Dtransport infrastructure
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5May / June 2025 · Paper 32 · Q20Show mark scheme →
Acapital investment increases
Bfewer people are encouraged to save
Cskills of unemployed workers become outdated
Dthe money supply increases
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6May / June 2025 · Paper 33 · Q16Show mark scheme →
Apeople who become temporarily unemployed because it takes a short period of time to find a job after they leave school
Bpeople who become unemployed when there is a recession but who will find employment as the economy comes out of recession
Cpeople who become unemployed for a long period of time due to a loss of job skills and work experience while unemployed
Dpeople who become unemployed when established firms close and new firms are created as technology advances
Mark scheme
7May / June 2025 · Paper 33 · Q18Show mark scheme →
Aeducation and training
Bimmigration controls
Cprice of housing
Dtransport infrastructure
Mark scheme
8May / June 2025 · Paper 34 · Q17Show mark scheme →
Aa decrease in information about vacancies
Ba decrease in trade union power
Can increase in unemployment benefits
Dan increase in immigration
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9Feb / March 2025 · Paper 32 · Q18Show mark scheme →
Aa decrease in income tax that increases aggregate demand
Ba decrease in unemployment benefit
Can increase in retraining schemes for the unemployed
Dmore advertising of employment vacancies in the economy
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10Oct / Nov 2024 · Paper 31 · Q17Show mark scheme →
AEconomic growth is falling.
BEconomic growth is rising.
CGeographical mobility of labour is rising.
DOccupational immobility of labour is rising.
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11Oct / Nov 2024 · Paper 31 · Q18Show mark scheme →
Athe level of unemployment benefit
Bthe militancy of trade unions
Cthe national minimum wage
Dthe participation on training courses
Mark scheme
12Oct / Nov 2024 · Paper 32 · Q17Show mark scheme →
Awhen there is a decline in the education levels of workers
Bwhen there is an increase in income tax rates
Cwhen there is an increase in labour mobility
Dwhen there is a rise in the rate of state unemployment benefits
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13May / June 2024 · Paper 31 · Q17Show mark scheme →
Aa decrease in government expenditure on goods and services
Ba decrease in the level of government payments to the unemployed
Ca decrease in trade union membership
Da decrease in interest rates
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14May / June 2024 · Paper 33 · Q17Show mark scheme →
Aa decrease in government expenditure on goods and services
Ba decrease in the level of government payments to the unemployed
Ca decrease in trade union membership
Da decrease in interest rates
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15Feb / March 2024 · Paper 32 · Q18Show mark scheme →
AThere is a higher level of trade unionisation in X.
BThere is more training and education in X.
CThere are greater incentives to find work in X.
DThere is a higher level of job vacancy information in X.
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16Oct / Nov 2023 · Paper 32 · Q16Show mark scheme →
Adecreased income tax rates
Bincreased government spending on education and training
Cincreased government spending on infrastructure
Dincreased subsidies to firms to employ school leavers
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17May / June 2022 · Paper 32 · Q22Show mark scheme →
Acyclical unemployment
Bfrictional unemployment
Cstructural unemployment
Dvoluntary unemployment
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18Oct / Nov 2021 · Paper 33 · Q22Show mark scheme →
AA government cannot reduce seasonal unemployment.
BChanging interest rates is the best way a government can reduce the natural rate of unemployment.
CChanging the exchange rate will not reduce demand-deficient unemployment.
DSupply-side policies can be used by a government to reduce frictional unemployment.
Mark scheme