1. Economics Unit 6, Lesson 3©2012, TESCCC

2. Unemployment The number of people (over 16) who do not have jobs but are actively seeking a job. ©2012, TESCCC

3. What are the problems with unemployment figures? 1.hidden unemployment or discouraged worker. –This worker is not longer looking for work, so he is not included in the unemployment number. Causes unemployment numbers to be understated ©2012, TESCCC

4. Problems with the unemployment figures 2.under employment- The worker is overqualified for a job Causes unemployment numbers to be understated ©2012, TESCCC

5. Four Types of Unemployment ©2012, TESCCC

6. 1. Frictional - “ between jobs” ©2012, TESCCC

7. Types of Unemployment 2.Seasonal - change of seasons or weather ©2012, TESCCC

8. 3. Structural -change in how economy operates; an entire industry fails; ©2012, TESCCC

9. Four Causes of Structural Unemployment 1.New technology – new innovations and ideas sometimes make the old ones obsolete. 2.Change in consumer demand – tastes change and consumers may stop purchasing old items 3.Globalization – jobs may be relocated to another country 4.Lack of education – some people do not have the minimum education or training for the jobs available today. ©2012, TESCCC

10. 4. Cyclical - jobs are lost in correlation with the business cycle (recession - lose job). ©2012, TESCCC

11. Economic Impact of unemployment is that our standard of living goes down and the economy faces an economic slowdown. ©2012, TESCCC

12. Full employment An unemployment rate below 6% is considered full employment ©2012, TESCCC