Unemployment (National). Unemployment Formula Unemployment Rate= Unemployed Persons/Total Labor Force X 100 Labor Force= all civilians 16+ who are working.

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Presentation transcript:

Unemployment (National)

Unemployment Formula Unemployment Rate= Unemployed Persons/Total Labor Force X 100 Labor Force= all civilians 16+ who are working or looking for a job Unemployed Persons= 16+ civilians who are looking for a job but do not have one

Unemployment (National)

Labor Force Participation Rate % of working age people who are –Working –Looking for a Job Working Age –16-64

Labor Force Participation Rate

Business Cycle Recession- real GDP goes down for at least 6 months. REALGDPREALGDP

GDP Gross Domestic Product Total valueTotal value (in dollars) of all final goods and services produced within a country within a given year

GDP C + I + G + NX Don’t Count –Used –Transfers –Non-market –Intermediate goods

Frictional Structural Cyclical Seasonal Not

Hit the debt ceiling, government slashes spending, GDP tanks Frictional Structural Cyclical Seasonal Not

You can’t stand this class anymore, drop out, and start looking for work Frictional Structural Cyclical Seasonal Not

A former switchboard operator is having trouble finding a skilled position Frictional Structural Cyclical Seasonal Not

New Jersey surf instructor in January Frictional Structural Cyclical Seasonal Not

Mr. Parish this spring. Frictional Structural Cyclical Seasonal Not

Mr. Parish this spring. Frictional Structural Cyclical Seasonal Not

Which Type of Unemployment? With new and easier tax software, John is afraid H&R Block might not need him in a few years. –Frictional –Cyclical –Structural –Seasonal

Poor __________ Assignment A. Write a brief story about a person who experiences all four types of unemployment within one year. B. Title it- Poor (name of character) C. Put the type of unemployment in parenthesis, behind each example. (i.e. structural)

Unemployment Formula Unemployment Rate= Unemployed Persons/Total Labor Force X 100 Labor Force= all civilians 16+ who are working or looking for a job Unemployed Persons= 16+ civilians who are looking for a job but do not have one

September Jobs Report 7.2% unemployment rate (7.3% Unemployed= 11.3 million Long Term Unemployed = 4.1 million –27 weeks U-6 rate= 13.6% (13.7%) Added 148,000 –12 month average = 185,000

Calculate Population = 10,000 Population = 8,000 Employed Persons = 5,000 Unemployed Persons = Labor Force = ____________ Unemployment Rate = ______________ Labor Force Participation Rate = _______

Calculate Population = 10,000 Population = 8,000 Employed Persons = 5,000 Unemployed Persons = Labor Force = 5,350 Unemployment Rate = 6.54% Labor Force Participation Rate = 66.88%

Labor Force Participation Rate % of working age people who are –Working –Looking for a Job Working Age –16-64

Consumers Price Index SubgroupsJune 2000June 2001 Restaurant meals and ready-to-eat food Household appliances and furnishings Clothing Footwear Alcoholic drinks Stationery, books, magazines and newspapers All Groups

Consumer Price Index Babe Ruth’s Salary –1931= $80,000 Average Player Today= $2,272,620

Consumer Price Index Herbert Hoover= $75,000 President Bush = $400,000

Consumer Price Index 1.5% annual.1% August

Consumer Price Index Measures change in price level of a “fixed basket of goods” Urban Areas Used for Social Security “cost of living” adjustments

CPI (Consumer Price Index)

GDP Deflator versus CPI GDP Deflator- changing basket CPI- fixed basket

Economic Indicators Business Cycle –“Real” GDP versus “Nominal” –GDP Deflator –C+I+G+NX –6 month contraction = Recession Unemployment Rate –4 Types –Calculation Inflation –CPI/GDP Deflator –Cost of Living Adjustment –“Real” Income

Stock Indexes measure the performance of a segment of the stock market Dow Jones Industrial Average –30 Large Companies NASDAQ –3,000 companies –Technology/growth companies (ex- Google) S&P 500 –500 companies of various industries

NASDAQ

Economic Indicators Business Cycle –*GDP = 16 Trillion –GDP Growth = (about) 2% Unemployment Rate –*7.2% Inflation –CPI = 1.5% Stock Indices

Unemployment Formula Unemployment Rate= Unemployed Persons/Total Labor Force X 100 Labor Force= all civilians 16+ who are working or looking for a job Unemployed Persons= 16+ civilians who are looking for a job but do not have one

Economic Indicators Business Cycle –*GDP = 15 Trillion –GDP Growth = (about) 2% Unemployment Rate –*7.9% Inflation –CPI = 3.2% Stock Indices