Unemployment

UNEMPLOYED/WORKFORCE Unemployment Rate The Unemployment Rate = the number unemployed divided by the workforce. UNEMPLOYED/WORKFORCE

Unemployment Rate (URate) Workforce = 200M, 20M are unemployed, the URate = 10% 150M, 30M are unemployed, URate = _________ 100M, 5M are unemployed, URate = __________

Unemployment Rate What is acceptable? Up to 6%

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.

Employment Statistics Start with the total population of the US. Subtract those under 16 Subtract those in the military Subtract those “institutionalized”

Employment Statistics 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”

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, vacation Subtract those looking but not finding, changing careers, etc.

Types of Unemployment 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.

Types of Unemployment Seasonal: due to climate…more prevalent in the Northern climates Example: Fabiola’s job as an Ice Road Trucker closes during the summer. Example: Andre’s roofing business closes for the winter.

Types of Unemployment 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 McGee’s Gift Emporium.

Types of Unemployment Structural: due to a change in industry, or a new technology Example: David’s VCR repair shop closes.

What are the problems with unemployment figures? 1. hidden unemployment or discouraged worker. This is the worker who is no longer looking for a job so he would not be included with the unemployment number. This worker is still a problem for the economy. We are not using this labor resource efficiently. Microsoft. (Designer). (2010). Clip art [Web Graphic]. Retrieved from http://office.microsoft.com/en-us/images/ ©2012, TESCCC

Problems with the unemployment figures under employment- worker’s skills do not match jobs. The worker is overqualified for a job or working at a job below their skills. This could be a person with a master’s degree in English who is working as a waiter. Again, we are not using this labor resource efficiently. Causes unemployment numbers to be understated Microsoft. (Designer). (2010). Clip art [Web Graphic]. Retrieved from http://office.microsoft.com/en-us/images/ ©2012, TESCCC

Economic Impact of unemployment is that our standard of living goes down and the economy faces an economic slowdown. (2012). Slow. (2012). [Print Photo]. Retrieved from http://h30499.www3.hp.com/t5/The-Future-of-Testing-Blog/Attended-and-Unattended-Testing/ba-p/5745707 ©2012, TESCCC