5 Unemployment Rate What is acceptable? Up to 6% What is considered “full employment”?About 4.5% URate, no cyclical unemployment, All factors of Production (LLC) in use.
6 Employment Statistics Start with the total population of the US.Subtract those under 16Subtract those in the militarySubtract those “institutionalized”
7 Employment Statistics This leaves the “Non Institutional Adult” population.Subtract those retired and receiving retirement fundsSubtract homemakersSubtract full time students over 16Subtract the “discouraged”
8 Employment Statistics This leaves the “Civilian Labor Force”Count full time workers (40 hrs. per week)Count part time workers (15-39 hrs per week)Count “unpaid” family business workers (part of the family)Count those on sick leave, strike, vacationSubtract those looking but not finding, changing careers, etc.
10 Types of UnemploymentFrictional: Someone is between jobs, about to start one-always present.Example: Rene just graduated college and is looking for a job.Example: Fabian just ended his tour in the military and is looking for a job as a Mercenary for the Government.
11 Types of UnemploymentSeasonal: due to climate…more prevalent in the Northern climatesExample: Fabiola’s job as an Ice Road Trucker closes during the summer.Example: Andre’s roofing business closes for the winter.
12 Types of UnemploymentCyclical: results from swings in the business cycle- not present during full employmentExample: Jerry loses his job drawing doodles because demand for drawings is low.Example: Gabby loses her job because business is too slow at Spanky McGee’s Gift Emporium.
13 Types of UnemploymentStructural: due to a change in industry, or a new technologyExample: David’s VCR repair shop closes.