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State the rate of unemployment in Ireland during 2012, as indicated by the Live Register - Leaving Cert Economics - Question (b) - 2012
Question (b)
State the rate of unemployment in Ireland during 2012, as indicated by the Live Register. Outline the limitations of the Live Register in measuring the rate of unem... show full transcript
Worked Solution & Example Answer:State the rate of unemployment in Ireland during 2012, as indicated by the Live Register - Leaving Cert Economics - Question (b) - 2012
Step 1
State the rate of unemployment in Ireland during 2012, as indicated by the Live Register.
Answer
The rate of unemployment in Ireland during 2012, as indicated by the Live Register, was 14.8% in May 2012, based on a total of 432,907 individuals registered. The forecasted rate for the year was approximately 14.1%.
Step 2
Outline the limitations of the Live Register in measuring the rate of unemployment in the Irish economy.
Answer
The Live Register has several limitations in accurately measuring unemployment:
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Inclusion of Part-Time Workers: It includes individuals working part-time who might be signing on for benefits, which can overstate unemployment figures since they are not fully unemployed.
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Social Welfare Recipients: People who receive social welfare payments but are also engaged in work (like in the 'black economy') may be included, again skewing the numbers.
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Non-Actively Seeking Employment: The register counts individuals who are not actively seeking employment, thereby not reflecting the true unemployment rate.
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Exclusion of Those Not on the Register: Individuals who are unemployed but do not qualify for benefits and are therefore not on the Live Register are excluded, resulting in an underestimation of unemployment.
These factors contribute to the potential misrepresentation of the true state of unemployment in the economy.