Here are twenty key terms all linked to aspects of the UK labour market that you can learn and then test using Quizlet.

Some key labour market terms to revise

• Derived demand: Demand for a factor of production as a result of demand for the final product that that factor of production can produce
• Discouraged workers: People out of work for a long time who may give up on job search and leave the labour market
• Dependency ratio: Ratio of dependents (people younger than 16 or older than 65) to the working-age population
• Discrimination: Different treatment of people based on age, gender, race, sexual orientation, ethnicity
• Economic rent: Any amount earned by someone above the minimum amount they require to work
• Full employment: When there enough unfilled job vacancies for all the unemployed to take paid work
• Gini coefficient: A measure of income inequality in a country, where 0 represents complete equality and 1 represents complete inequality.
• Human capital: The amount of skill, knowledge, talent, experience and ability of workers.
• Labour force: All people who are of working age, and able and willing to work. It includes both the employed, and the unemployed.
• Living wage: Hourly pay that provides enough money for a working person to live decently and provide for their family.
• Marginal revenue product: Extra revenue generated when an additional worker is employed.
• Money wages: Also known as "nominal wages"; the actual hourly rate of pay - it is not adjusted for inflation
• Monopsony employer: A labour market structure in which there is a single powerful buyer of a particular type of labour.
• Participation rate: Proportion of the population of working age that is in the labour force (either employed or unemployed).
• Poverty trap: Situation in which there is no incentive for workers earning a low income to earn extra income, because it would result in having to either pay higher tax and/or losing some of their benefit payments
• Real wage: The hourly rate of pay adjusted for inflation
• Transfer earnings: The minimum reward required to keep factors of production, such as labour, in its current occupation.
• Union density: Percentage of a particular labour force that belongs to a trade union
• Universal credit: Single monthly benefit designed to replace 6 separate benefits for people who are on low income or out of work.
• Wage elasticity of demand for labour: The responsiveness of the demand for labour to a change in the wage rate of labour. Calculated using the formula: %ΔDL ÷ %ΔW