Virtual Econ Video: Unemployment. 1. How is unemployment measured? 2. How is the unemployment rate calculated? 3. What is the significance of the unemployment.

Slides:

Advertisements

Similar presentations

Advertisements

Chapter 5: Monitoring Jobs and Inflation

AP Economics Mr. Bernstein Module 12: The Meaning and Calculation of Unemployment February 6, 2015.

SSEMA 1, 2.3. What is Macroeconomics? The study of the performance of our economy as a whole.

Unemployment Why is unemployment a problem? – Lost production and income – Lost human capital Measuring unemployment – The Current Population Survey Monthly.

1 Chapter 12 Practice Quiz Tutorial Business Cycles and Unemployment ©2004 South-Western.

Unit 6 Unemployment Top Five Concepts

Ch 5: Macroeconomic Measurements, Part I Prices & Unemployment Del Mar College John Daly ©2003 South-Western Publishing, A Division of Thomson Learning.

Learning Objectives Know how unemployment is measured.

Potential GDP Time Total Production Every year we produce more than the previous year Full Employment: zero unemployment, no excess capacity Above Full.

Chapter 11 ©2010  Worth Publishers Unemployment and Inflation.

And UNEMPLOYMENT. Video tutorial: Go to ECON LINKS PAGE and scroll to VIDEO TUTORIALS: MACROECONOMICS and choose Episode 18.

1 Business Cycles and Unemployment Economics for Today by Irvin Tucker, 6 th edition ©2009 South-Western College Publishing.

Macro Chapter 8 Economic Fluctuations, Unemployment, and Inflation.

Ch 5: Macroeconomic Measurements, Part I Prices & Unemployment

MacroEconomics Unemployment Mr. Odren. Objective: Students will learn the 4 different types of unemployment Stinger: ► Do you think everyone should be.

Aim: To what extent can unemployment be resolved by addressing expansions and contractions in GDP? Do Now: What is the nature of the relationship between.

Unemployment and Inflation. Economics defines the labor force as all nonmilitary people who are employed or unemployed. The United States Labor Force.

 Expansion  Peak  Recession  Trough  GDP rises  More jobs are available  Unemployment rate falls  National income expands  People borrow to.

Module 12 Mar  Defining and Measuring Unemployment ◦ Employed – you have a job ◦ People not considered – retired, disabled, institutionalized,

MACROECONOMICS Unit 4 Unemployment Top Five Concepts.

Chapter 3 political and economic analysis Section 3.1

Who is employed? Civilian Labor Force: +16, working, or looking. An employed person is any person 16 years old or older 1.who works for pay, either for.

1 Chapter 16 Business Cycles and Unemployment Key Concepts Key Concepts Summary Practice Quiz Internet Exercises Internet Exercises ©2002 South-Western.

1 of 35 chapter: 8 >> Krugman/Wells ©2009  Worth Publishers Meaning and Calculation of Unemployment.

UNEMPLOYMENT Think of all the words connected to unemployment and fill in as many as you can think apply to the word.

Meaning & Calculation of Unemployment. Objectives: How is unemployment measured and calculated? What is the relationship between the unemployment rate.

By: Amber Belt 5 th period. Types of Unemployment It always exists even in a booming economy. Not just a personal issue it is an issue nationally. Frictional.

Business Cycles and Unemployment. Business Cycle Alternating periods of economic growth and contraction, which can be measured by changes in real GDP.

© 2013 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Economic Challenges Unemployment. Unemployment What’s a good definition for Unemployment? –A condition in which a willing worker is lacking a job (and.

Unemployment in the U.S.. The U.S. Unemployment Rate since 1960 Sources : and, Robert J. Gordon, Macroeconomics (Boston: Addison-Wesley,

Economic Indicators. Gross Domestic Product GDP per Capita.

Economic Goals 1 economic freedom 2 economic efficiency 3 economic equity 4 economic security 5 economic stability 6 economic growth.

Opening Questions (Discuss in Small Groups) 1.How would you characterize the relationship between GDP and Unemployment? 2.Which demographic groups, if.

Macro Goals. Recall goals of Macro Economic Growth – measured by GDP Full Employment – Measured by unemployment rate Price Stability – measured by inflation.

Macroeconomic Measurements, Part I Prices & Unemployment Del Mar College John Daly ©2002 South-Western Publishing, A Division of Thomson Learning.

Notes MEASURES OF ECONOMIC ACTIVITY.  3 Main Measures of Economic Activity  Gross Domestic Product  Labor Activities  Consumer Spending HOW IS ECONOMIC.

How the U.S. Economy works

Who is employed? Civilian Labor Force: +16, working, or looking. An employed person is any person 16 years old or older 1.who works for pay, either for.

Employment  The number of paid workers in population.

Chapter 12 and 13 Economics. First part of Jeopardy deals with Chapter 12 and GDP.

ECONOMIC CHALLENGES. What do I need to know? Economic growth, inflation, & unemployment are key measures of economic activity.

1 Chapter 12 Business Cycles and Unemployment Key Concepts Key Concepts Summary ©2000 South-Western College Publishing.

1 Sect. 3 - Measurement of Economic Performance Module 10 - The Circular Flow & GDP What you will learn: How economists use aggregate measures to track.

Unemployment Chapter #7. Introduction Unemployment & output are tightly linked – but not perfect Unemployment is a lagging economic indicator –Can be.

Competency 38 Demonstrate knowledge of a nation’s economic goals, including full employment, stable prices, and economic growth Do Now: 1)List some vital.

Section 3.1 What Is an Economy? Chapter 3 political and economic analysis Section 3.2 Understanding the Economy.

Business Cycles and Unemployment

Economic Indicators.

A measure of wasted resources: Wasted labor hours and capital

Business Cycles and Unemployment

Unemployment vs Employment

Challenges to the Free Market System

Section 3 Module 12.

Module The Meaning and Calculation of Unemployment

Module The Meaning and Calculation of Unemployment

Module The Meaning and Calculation of Unemployment

Employment and Unemployment

The Meaning and Calculation of Unemployment

GDP and the Economy Vocabulary Coach Lott.

Types of Unemployment.

Types of Unemployment.

The Meaning and Calculation of Unemployment

Module The Meaning and Calculation of Unemployment

The Meaning and Calculation of Unemployment

Unemployment 13.1 Why should our nation be concerned about unemployment? Gauges the economic health of a country by tracking the number of people who are.

The Meaning and Calculation of Unemployment

Presentation transcript:

Virtual Econ Video: Unemployment

1. How is unemployment measured? 2. How is the unemployment rate calculated? 3. What is the significance of the unemployment rate on the economy? 4. What is the relationship between the unemployment rate and economic growth?

1. Employed = 2. Unemployed = 3. Is a person retired receiving Social Security unemployed? 4. Is a disabled veteran unemployed? 5. Labor force participation rate: 6. LF Formula: 7. Unemployment rate: 8. Unemp. Formula:

1. Employed = person has a job 2. Unemployed = actively looking for work who do not currently have a job 3. Is a person retired receiving Social Security unemployed? 4. Is a disabled veteran unemployed? 5. Labor force participation rate: % of population aged 16 or older that is in the labor force 6. LF Formula: 100 x (LF)/civilian population 16 and older 7. Unemployment rate: % of the total number of people in the labor force who are unemployed 8. Unemp. Formula: 100x (# unemployed/# Labor Force)

Aux

1. What is happening in the economy when the unemployment rate is low? 2. What is happening in the economy when the unemployment rate is rising? 3. What is happening in the economy when the unemployment rate is consistently high?

1. What is happening in the economy when the unemployment rate is low? › Sustainable economic growth › (GDP is positive & steady), › jobs are plentiful, 2. What is happening in the economy when the unemployment rate is rising? › Consumers are buying less products, › businesses produce less, › workers begin to be laid off › GDP begins to decline 3. What is happening in the economy when the unemployment rate is consistently high? › Businesses have slowed production & fired many workers › Jobs cannot be found › People without jobs do not spend or invest

1. Ex: The economy is weak & John has seen his hours cut from 40 to 10. He is still employed but what is the problem with his employment scenario? 2. Ex: Lauren has her Master’s degree, but can only find work as a bartender in a coffee shop. She still has a job, but do her skills match her work? 3. John and Lauren are ________________ & are not counted in the __________________.

1. Ex: The economy is weak & John has seen his hours cut from 40 to 10. He is still employed but what is the problem with his employment scenario? 2. Ex: Lauren has her Master’s degree, but can only find work as a bartender in a coffee shop. She still has a job, but do her skills match her work? 3. John and Lauren are underemployed & are not counted in the unemployment rate.

1. Anna has been unsuccessfully seeking work for over a year, and she finally decided to give up. But, would she take a job if there was one to take? 2. Anna is d________________and not counted in the u_______________rate. 3. Not counting underemployed workers and discouraged workers causes the official unemployment scenario to appear l_______or ________ than the actual labor market conditions. 4. Why would the government not count these people in the UR? Explain the above cartoon.

1. Anna has been unsuccessfully seeking work for over a year, and she finally decided to give up. But, would she take a job if there was one to take? 2. Anna is discouraged and not counted in the unemployment rate. 3. Not counting underemployed workers and discouraged workers causes the official unemployment scenario to appear lower or (better) than the actual labor market conditions. 4. Why would the government not count these people in the UR?

 Draw a simple graph of the relationship between unemployment rate & Real GDP.

Real GDP UR 0

Civilian Population236,832 Employed138,333 Unemployed14,837 Total Civilian Labor Force153,170 Not in the Labor Force83,663 Discouraged Workers (subset of those not in the labor force) 1,065 Calculate: 1.Labor force participation rate. 2.Unemployment rate. 3.Unemployment rate with discourages workers.

Civilian Population236,832 Employed138,333 Unemployed14,837 Total Civilian Labor Force153,170 Not in the Labor Force83,663 Discouraged Workers (subset of those not in the labor force) 1,065 Calculate: 1.Labor force participation rate. 153,170 / 236,832 = 64.7% 2.Unemployment rate. 14,837 / 153,170 = 9.7% 3.Unemployment rate with discouraged workers. (14, ,065) / 153, ,065) =10.3 %

Employment Scenario Truly Unemployed?Discouraged or Underemployed? Effect on the UR? Larry, a construction worker has been laid off and cannot find work so he quit looking Brian, a college professor, decides not to teach summer school Christy, a financial planner, was laid off and is currently looking for a job Kristin lost her job so she went back to graduate school because jobs are scarce

Employment Scenario Truly Unemployed?Discouraged or Underemployed? Effect on the UR? Larry, a construction worker has been laid off and cannot find work so he quit looking YESDiscouragedUR goes down Brian, a college professor, decides not to teach summer school NoneitherUR not affected Christy, a financial planner, was laid off and is currently looking for a job YESneitherUR goes up Kristin lost her job so she went back to graduate school because jobs are scarce YESDiscouragedUR goes down