Presentation on theme: "The Unemployment Rate = the number unemployed divided by the workforce."— Presentation transcript:
The Unemployment Rate = the number unemployed divided by the workforce.
Workforce = 200M, 20M are unemployed, the URate = 10% 150M, 30M are unemployed, URate = _________ 100M, 5M are unemployed, URate = __________
What is acceptable? Up to 6%
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.
Start with the total population of the US. Subtract those under 16 Subtract those in the military Subtract those institutionalized
This leaves the Non Institutional Adult population. Subtract those retired and receiving retirement funds Subtract homemakers Subtract full time students over 16 Subtract the discouraged
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, vacation Subtract those looking but not finding, changing careers, etc.
Frictional: 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.
Seasonal : due to climate…more prevalent in the Northern climates Example: Fabiolas job as an Ice Road Trucker closes during the summer. Example: Andres roofing business closes for the winter.
Cyclical: results from swings in the business cycle- not present during full employment Example: Jerry loses his job drawing doodles because demand for drawings is low. Example: Gabby loses her job because business is too slow at Spanky McGees Gift Emporium.
Structural: due to a change in industry, or a new technology Example: Davids VCR repair shop closes.