Hidden unemployment question? (1 Viewer)

[swagmeister]

What did everyone say for how hidden unemployment is shown through statistics? I just said it's not, and that statistics may be distorted as a result of this.

Anyone else have thoughts?

 

[sy37]

yeah that's the correct answer

technically, they are unemployed as they represent resources (labour) not being used but by the definition requiring them to be 'actively seeking work' which they do not because they are eg discouraged, then figures will show a lower unemployment rate..

 

[snail489]

this is the short answer one right? I basically just wrote the definitions of hidden u/e and u/e and then explained why it won't be reflected in the u/e rate using those definitions

 

[Ekman]

I said this as well, but I decided to tack on that the only time it will influence the unemployment rate is during times of boom, where favourable eco conditions causes hidden unemployed to start looking for jobs. Otherwise it will not influence it at all.

 

[Untroubled]

I included a discussion on what the unemployment rate actually measures and that it did not take into account hidden unemployment.
Also, concluded the same way in terms of distorting statistics.

 

[malcolm21]

wasnt the question askging what happens to the unemployment rate, not the amount of people out of work, so the answer has to be rate goes down?

 

[sy37]

wasnt the question askging what happens to the unemployment rate, not the amount of people out of work, so the answer has to be rate goes down?

yeah that's what we are also talking about lol

I think there is a hidden mark in that question where you have to specify explicitly that it will go down rather than distort, however that assumes a degree of hidden unemployment in the ecnoomy..anyway just a 2 marker

 

[Untroubled]

wasnt the question askging what happens to the unemployment rate, not the amount of people out of work, so the answer has to be rate goes down?

Wait a min... the question asked whether hidden unemployment would affect/change the unemployment rate

 

[malcolm21]

Wait a min... the question asked whether hidden unemployment would affect/change the unemployment rate

i dont think it was 'whether', thats like a yes or no question, you had to say what it does to the rate and the reasoning

 

[swagmeister]

i dont think it was 'whether', thats like a yes or no question, you had to say what it does to the rate and the reasoning

I thought the question was just asking how hidden unemployment is reflected in unemployment statistics or something?

 

[swagmeister]

yeah that's what we are also talking about lol

I think there is a hidden mark in that question where you have to specify explicitly that it will go down rather than distort, however that assumes a degree of hidden unemployment in the ecnoomy..anyway just a 2 marker

I guess you could say an increase in hidden employment, as people stop looking for jobs, leads to a decrease in the unemployment rate?

But the question didn't ask about what happens if it goes down, so do people reckon you'll need this to get the marks?

 

[malcolm21]

i defined hidden u/e,and said

I guess you could say an increase in hidden employment, as people stop looking for jobs, leads to a decrease in the unemployment rate?

because less job seekers

 

[swagmeister]

i defined hidden u/e,and said because less job seekers

Yup. Probably lost a mark there, devo. Should have said an increase in hidden unemployment leads to lower the rate of unemployment.

I don't think too many people would have made that link though, so if the question is band 4 target then I don't think they will be specifying that in the marking criteria.

 

[xetamine]

"How is the measure of the unemployment rate in Australia influenced by hidden unemployment?"

2 marks

Someone scanned the exam and uploaded it ALREADY lol. Not sure how.

You should get the full two marks if you express correctly that hidden unemployment is not included in the unemployment rate, and higher hidden unemployment will lead to lower unemployment rates.

 

[sy37]

I guess you could say an increase in hidden employment, as people stop looking for jobs, leads to a decrease in the unemployment rate?

But the question didn't ask about what happens if it goes down, so do people reckon you'll need this to get the marks?

After thinking about it for a while and looking at the question, I can't imagine them giving 2/2 for not explicitly making the link that hidden unemployment decreases the unemployment rate - I don't think you can just say 'distorted' because it specifically said Australia, to which we know there is a degree of hidden unemployment present.

 

[YouCantMakeMe]

But according to csu:
"People who are not in the labour force include full-time students, people who perform domestic duties, people who have retired and unemployed persons not actively seeking employment." --http://www.hsc.csu.edu.au/economics/issues/unemployment/Topic3Tutorial1Unemployment2.html

If they're not included in the labour force (because hidden unemployed are unemployed people not actively seeking employment) then why would they affect the unemployment rate? (considering the unemployment rate is the rate of the unemployed to the labour force)

Am I thinking about this right?

 

[malcolm21]

But according to csu:
"People who are not in the labour force include full-time students, people who perform domestic duties, people who have retired and unemployed persons not actively seeking employment." --http://www.hsc.csu.edu.au/economics/issues/unemployment/Topic3Tutorial1Unemployment2.html

If they're not included in the labour force (because hidden unemployed are unemployed people not actively seeking employment) then why would they affect the unemployment rate? (considering the unemployment rate is the rate of the unemployed to the labour force)

Am I thinking about this right?

unemployment is the amount of people trying to find a job, who simply cant. there are people like students and discouraged people who are initially counted as unemployed. after these people are accounted for as being hidden unemployed, since they're not actually looking for jobs, then they are removed from the 'headline' unemployment rate which means a lower value for unemployment is given

 

[HecticSandWitch]

After thinking about it for a while and looking at the question, I can't imagine them giving 2/2 for not explicitly making the link that hidden unemployment decreases the unemployment rate - I don't think you can just say 'distorted' because it specifically said Australia, to which we know there is a degree of hidden unemployment present.

How about the inverse? On top of the usual hidden unemployment is not counted in the unemployment statistics that has already been covered, I said that if hidden unemployment was to be included in the unemployment statistic, it would lead to a substantial increase in the unemployment rate.

 

[karan96]

wait, so if i said that hidden unemployment is not considered in unemployment statistics and therefore has no effect, i'll only get 1 mark? because the question doesn't ask what effect would an increase in hidden unemployment have, but the influence. idk, i'll be disappointed if i lose a mark for that cause i was gonna write that it does decrease unemployment but then ceebsed

 

[YouCantMakeMe]

wait, so if i said that hidden unemployment is not considered in unemployment statistics and therefore has no effect, i'll only get 1 mark? because the question doesn't ask what effect would an increase in hidden unemployment have, but the influence. idk, i'll be disappointed if i lose a mark for that cause i was gonna write that it does decrease unemployment but then ceebsed

On the same boat as you, but it's probably just one mark. Or maybe even none which is kinda annoying.