1. MacroEconomics Unemployment Mr. Odren

2. Objective: Students will learn the 4 different types of unemployment Stinger: ► Do you think everyone should be guaranteed a job? Why or why not? ► Also, what do you believe Full Employment means?

3. UNEMPLOYMENT IS… ► SOMEONE ACTIVELY LOOKING FOR A JOB!!! ► Unemployment is the inability of labor- force participants to find jobs ► Unemployment has a variety of causes. ► Some level of unemployment is expected, even when an economy is healthy.

5. Civilian Labor Force The labor force consists of all persons over the age of 16 who are either working for pay or actively seeking paid employment. Underemployed: work part-time, want full-time or work below skill level Discouraged Workers: People who are not employed and not actively seeking employment are not counted as part of the labor force. Called UnderEmployed or Discouraged

6. Underemployment

7. Measuring Unemployment ► The Unemployment Rate  Measure of unemployment  Includes those over 16 who are not working, are able to work and actively seeking work  Does not include military, those in prison, those who are not seeking a job. Unemployment rate = number of unemployed people / civilian labor force For example: 8,800,000 unemployed / 147,000,000 civilian labor force = 6.0% unemployment rate.

8. Measuring Unemployment ► Full Employment  Always some degree of unemployment: ► people relocate; look for better job; can’t find appropriate job  Unemployment rate of 4 to 6 percent considered full employment in U.S. ► The overall economic goal of the U.S. economy is for full employment.

10. 1. FRICTIONAL UNEMPLOYMENT ► People “in between” jobs  looking for their very first job  OR people that voluntarily choose to quit their jobs  Moving to another city, state, or country  Looking for better pay or benefits ► Least serious type of unemployment out of the four

11. Question to Answer:  Why is frictional unemployment the least serious????  What about its definition makes it not too serious?

12. 2.STRUCTUAL UNEMPLOYMENT ► People that lose their jobs because their skills are not needed  Replaced by new technology or machines  New industries requiring specialized education do not employ unskilled ► MOST SERIOUS type of unemployment because they get discouraged and eventually give up looking for a job

13. 3. CYCLICAL UNEMPLOYMENT ► People that lose a job because of a downturn in the economy ► They are skilled, but due to slow business, some people are fired during times of recession ► When the economy picks up, the can easily find a job.

14. 4.SEASONAL UNEMPLOYMENT ► People that are unemployed during certain times of the year ► These are jobs that are not in demand 365 days of the year

15. Impact of Unemployment on GDP ► Remember GDP?: C+I+G+(Export-Import) ► Lower Consumer Spending ► Lower investments, causes lower capital for new businesses ► Lower Exports ► Lower Imports ► Lower Government spending because lower tax revenues ► Lower GDP  Contraction / Recession

16. Impact of Unemployment ► Unemployed workers are twice as likely as their employed counterparts to experience psychological problems such as depression, anxiety, psychosomatic symptoms, poor self-esteem ► Breakdown of Family Structure (Remember 30 Days Minimum Wage) ► Poverty

17. ► A high school student is looking for her very first job. ► A computer technician gets fired during a recession. ► A teacher resigns his job because he is moving to another part of state.

18. ► A ski instructor is out of a job after the snow season is over. ► A supermarket cashier gets fired after the store adopts self-check out machine stands.

19. ► Draw a picture or comic to show the four different types of unemployment. ► Draw pictures, stick figures, cut out magazine pictures to illustrate the meaning to you of each type of unemployment. ► Remember, it is a basic storyboard that illustrates the definition of each type of unemployment. ► Finishing details…it has to be neat and colored!!! ► DUE DATE: End of Class ► 25 points!!!

20. POINT BREAKDOWN ► 5 POINTS EACH FOR THE STORYBOARD OF FRICTIONAL, STRUCTURAL, CYCLICAL AND SEASONAL UNEMPLOYMENT ► 5 POINTS FOR OVERALL NEATNESS, CREATIVITY, COLOR, ETC…