-Living Standards are lower: Workers don’t make more, so they aren’t paid more. The only thing that makes society better off in the long-term is productivity growth.
-International Competitiveness: UK unit costs will be higher, so we will export less to rest of the world.
-Less Tax Revenue: Less is made per worker, so there is less tax (income tax) paid per worker
-Economic growth will increase demand
-Recessions will decrease demand
-The demand for their finished product may increase (e.g. Lithium)
They do not have a job and are not looking for a job.
Generally this covers people between 15 to 64 years old who are not looking for a job and are not in full-time education.
-Recession
-Decreased demand for the product the worker produces
Macroeconomic Equilibrium occurs where Injections = Withdrawals
Greater availability of credit (for example, increased use of credit cards in the USA) will allow consumers to increase their spending.
Consumer expenditure will be lower where availability of credit is limited (for example the informal family-based credit networks in Afghanistan)
Over 1m jobs, 3% of all jobs.
Details: 1.08m jobs in Q1 2022.
Cyclical
A system where both free market mechanism and government planning process allocate resources in society.
