5Unemployment 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.
6Employment Statistics Start with the total population of the US.Subtract those under 16Subtract those in the militarySubtract those “institutionalized”
7Employment Statistics This leaves the “Non Institutional Adult” population.Subtract those retired and receiving retirement fundsSubtract homemakersSubtract full time students over 16Subtract the “discouraged”
8Employment 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.
10Types 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.
11Types 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.
12Types 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.
13Types of UnemploymentStructural: due to a change in industry, or a new technologyExample: David’s VCR repair shop closes.