Why doesn’t real GDP always give an accurate gauge the health of the U Why doesn’t real GDP always give an accurate gauge the health of the U.S. economy? Why do many people look to the unemployment rate as a more telling measure of the health of the U.S. economy?

Unemployment Essential Questions: What are the causes of unemployment? How is the unemployment rate impacted by fluctuations in the business cycle?

Types of Unemployment Unemployed – Unemployment Rate – Cyclical Unemployment Definition: Example: Structural Unemployment Definition: Example: Unemployed – Unemployment Rate – Full Employment – Technological Unemployment Definition: Example: Types of Unemployment Seasonal Unemployment Definition: Example: Frictional Unemployment Definition: Example:

Video Clip Summarize the current and future problem of technological unemployment in 4 to 6 lines.

Use the unemployment statistics to answer the following questions: What was the unemployment rate for 2015? How does this compare with recent years? The “Great Recession” began in December 2007. Describe the trend in the unemployment rate since December 2007. Since 1942, which years had an unemployment rate above 7%? Why do you think this is the case? Since 1942, which years had an unemployment rate below 4%? Why do you think this is the case? In the last thirty years, when was our economy at “full employment”? Describe the trend in the labor participation rate since 1945. To do this, look at the “Percent of Population” in the “Civilian Labor Force” http://www.bls.gov/CPS/ Go to “CPS Tables” → “Employment status of the population, 1940s to date”

http://data.bls.gov/timeseries/LNS14000000

http://data.bls.gov/timeseries/LNS14000000

U-1: Persons unemployed 15 weeks or longer U-2: Percentage of people who lost jobs or completed temporary work U-3: Total unemployed (official unemployment rate) U-4: U-3 + “discouraged workers” U-5: U-4 + “persons marginally attached to the labor force”. U-6: U-5 + part-time workers who want to work full time but can’t find full-time jobs. http://www.bls.gov/news.release/empsit.t15.htm

Video Clip Summarize the problem faced by the long-term unemployed, as explained by the video, in 4 to 6 lines