1. Unit 11. The Unemployment IES Lluís de Requesens (Molins de Rei)‏
Batxillerat Social
Economics (CLIL) – Innovació en Llengües Estrangeres
Jordi Franch Parella

2. The unemployment
The natural rate of unemployment is the unemployment that the economy normally experiences
Cyclical unemployment is the fluctuation of unemployment around its natural rate. It is associated with ups and downs of the business cycle
Structural unemployment is the mismatch between demand and supply of labour (minimum-wages, unions ...)‏

3. The Unemployement
The labour force is the total number of workers, including both the employed and the unemployed
Unemployment rate = Unemployed / Labour force x 100
Labour force participation = Labour force / Population x 100
Labour force ocupation = Employed / Population x 100

4. The Unemployment
It is difficult to distinguish between a person who is unemployed and a person who is not in the labour force
Discouraged workers, people who would like to work but have given up looking for jobs after an unsuccessful search, are not in unemployment statistics
Other people may claim to be unemployed in order to receive subsidies, even though they are not looking for jobs

5. The Unemployment
One of the most important problems of unemployment is that some workers are jobless for long periods of time
In a flexible labour maket, wages would adjust to balance demand and supply of labour, ensuring that all workers were fully employed
Minimum-wages prevent this adjustment
The power of unions
Efficiency wages