1. Chapter Eight: Employment and Unemployment

2. Paid Work and Unemployment in the United States

3. Are you: Under age 16? In an institution? On active duty in the military? Did you: Work at all last week for pay or profit? Work 15 hours or more in a family business? Have you been actively searching for work? Are you available to start a job? NOT SURVEYED BY THE BUREAU OF LABOR STATISTICS 70.7 million EMPLOYED 143.5 million UNEMPLOYED 12.0 million NOT IN THE LABOR FORCE 89.3 million “Yes” to any question “Yes”to either question “Yes”to both questions “No” to all questions in Box A “No” to both questions in Box B “No” to either question in Box C LABOR FORCE 155.5 million A B C Figure 8.1: Who is in the Labor Force? Source: BLS News Release, “The Employment Situation—February 2013,” March 8, 2013; U.S. Census Bureau Current Population Clock.

4. Table 8.1: Unemployment Rates for Different Groups Source: BLS News Release, “The Employment Situation—February 2013,” March 8, 2013. a People are allowed to indicate more than one racial group. However, data from people who indicated more than one race are not included in these statistics.

5. Women Men Figure 8.2: Male and Female Labor Force Participation Rates, Aged 24 to 54, 1948-2012 Sources: Mosisa, Abraham, and Steven Hipple, “Trends in Labor Force Participation in the United States,” BLS Monthly Labor Review, p. 35–57, October 2006; BLS 2013 Employment and Earnings Online, Household Survey Data, Table 3; various editions of the Statistical Abstract of the United States

6. Unemployment

7. 1969- 1970 1973- 1975 19801981- 1982 1990- 1991 20012007- 2009 Unemployment Rate Figure 8.3: The Monthly Unemployment Rate in the United States, 1969-2013 Source: U.S. Bureau of Labor Statistics online database

8. Unemployment Rate Average Duration of Unemployment Figure 8.4: Average Duration of Unemployment and Unemployment Rate, 1970-2012 Source: U.S. Bureau of Labor Statistics online database

9. Theories of Employment, Unemployment, and Wages

10. Demand Wage Quantity of Labor Supply WEWE LELE Figure 8.5a: The Classical Labor Market Model

11. Demand Wage Quantity of Labor Supply LSLS LDLD W* Labor Surplus (Unemployment) Figure 8.5b: Unemployment in the Classical Labor Market Model

12. Real Nonfarm Labor Productivity (1947=1) Real Nonfarm Hourly Wages (1947=1) Figure 8.6: Real Nonfarm Median Wages and Labor Productivity, 1947-2012 Source: U.S. Bureau of Labor Statistics, Labor Productivity and Costs online database