1. The Big Questions ► How are we doing? ► What’s the best way to show a group’s employment condition? ► Why do people lose their jobs?

2. Game Plan ► Vocab/Partner Activity ► “Determine the Unemployment Rate” Challenge ► Info  1-2 slides of notes  graphs  web site  video ► Partner/Role Play--What’s the town’s U rate? ► Types of U, and skits

3. With a Partner Employed Unemployed Labor Force ► What do YOU think each of the above words means? ► Write down your answers, and be prepared to share.

4. In this country, there are… ► 50 people ► 6 of them are children ► 2 are prisoners ► 12 are stay-at-home parents ► 5 of them are homeless but are not looking for jobs ► 20 are working various jobs ► 5 are out of work, but are looking for work ► What is the unemployment rate????

5. In this country, there are… ► 50 people These Don’t Count ► 6 children ► 2 prisoners ► 12 stay-at-home parents ► 5 are homeless but are ► These Count not looking for jobs ► 20 are working various jobs ► 5 are out of work, but are looking for work ► Labor Force=____ ► Unemployment Rate = 5/25 = 20%

6. To be considered “unemployed” ► you have to be looking for a job. ► Who is unemployed in this list?  a stay-at-home-mom  a ten yr-old kid  a guy who, after looking for a job for 6 months, gave up and moved in with his parents  a retired person

7. Measuring Unemployment ► # unemployed (must be looking) ► total civilian labor force ► civilian means “not military” ► labor force = employed + unemployed  (all the people either working or looking for work)

8. Measuring Unemployment ► The civilian labor force doesn’t include:  military personnel (why?)  people in mental institutions  prisoners  people under 16 ► For month-to-month numbers, most economists look at non-farm payroll unemployment. Why?

12. RGDP Unemployment Rate

14. Google Unemployment Rate Google Unemployment Rate

15. The Unemployment Rate ► understates unemployment ► doesn’t include:  discouraged workers  part-timers who can’t find full-time work 16.8 9.7 9.6%17%

16. CEA Chair Talks U. Rate CEA Chair Talks U. Rate

17. Calculate the Town’s Unemployment Rate! ► ► Work with your partner to determine this town’s unemployment rate. ► ► Write down all of your calculations, along with the answer. ► ► Put both of your names on the paper.

18. Assignment ► Take a moment to think of a reason why someone might lose their job. ► Be specific!

19. Kinds of Unemployment ► Frictional: between jobs (it’s personal) ► Structural: changes in consumer tastes or industry operations ► Cyclical: changes in business cycle ► Seasonal: changes in weather/seasons

20. Assignment ► ► Compose a skit in which someone is losing their job. ► ► You will act out your skits in front of the class. ► ► The class will identify which type of unemployment your skit represents. ► ► Join with another group of two near you. ► ► Each group will compose one skit. ► ► Each group will draw a type of unemployment from the hat. This will be the type of unemployment you write your skit about. ► ► You will have about fifteen minutes to write your short skits.

21. Other Measures of Unemployment Other Measures of Unemployment Unemployment Rate U-6

22. Unemployment Rate Imperfections ► With your partner, answer these questions, and be prepared to share: ► Is the unemployment rate you calculated a good indicator of the job situation in town? Why/why not? ► Do you think this number makes things seem better than they are or worse than they are? If so, why?

23. Bell Ringer ► Grab a marker board and marker, and draw a businesses cycle graph representing the United States economy. For the time frame, start your graph at 2005, and end it at 2015. Draw your prediction as to what the country’s economy will look like over the next five years. Mark the point on the graph where you believe we are at now.