Under age 16? In an institution? On active duty in the military? Been actively searching for work? Available to start a job? Not surveyed by the Bureau of Labor Statistics 70.8 million “Yes” to any question “No” to all questions in Box A Worked at all last week for pay or profit? Worked 15 hours or more in a family business? “No” to both questions in Box B “Yes” to either question EMPLOYED million UNEMPLOYED 7.2 million “Yes” to both questions “No” to either question in Box C NOT IN THE LABOR FORCE 79.5 million LABOR FORCE million A C B

Year Unemployment Rate (percent)

Demand Wage Quantity of Labor Supply WEWE LELE

Demand Wage Quantity of Labor Supply LSLS LDLD W* Labor Surplus (Unemployment)

Employment and output Aggregate demand for goods and services Spending stimulates firms to produce Production generates incomes Incomes give actors the ability to spend Income

Unemployment Rate Year “Natural” Rate of Unemployment Actual Rate of Unemployment

Unemployment Rate (percent) Inflation (percent per year) NAIRU

“Natural” Rate? Unemployment Rate (percent) Year

Men Women Labor Force Participation Rate (percent)