1. Unemployment What is unemployment rate?

2. Unemployment Measuring Unemployment Measuring Unemployment Identifying the Employed and Unemployed Employed Employed 16 and older Work for pay/profit 1 or more hours Work with out pay in a family business 15 or more hrs Have a job but not working due to an illness, weather, vacation, or labor dispute Unemployment Rate Unemployment Rate Percentage of people in the civilian labor force who are unemployed (I) time of recession (D) expansion Unemployment Rate = Unemployed / Labor Force (100) Problems w/ Unemployment Rate Problems w/ Unemployment Rate Intensity of job search Doesn’t include those who you would thing of as unemployed

3. Marginally attached workers Marginally attached workers People who held productive job but have given up looking Discouraged Worker Discouraged Worker People who want a job but have stop looking for work for job related reasons Underemployed Underemployed Worker who have job beneath their skill level or want a full time job but only have a part time job Labor Force Statistics Labor Force Statistics Are broken down by: Age, sex, race, martial status, industry, and occupation Determining Full Employment Determining Full Employment Not everyone has a job, and Unemployment can not equal

4. Types OF Unemployment Frictional Unemployment Frictional Unemployment Workers who move from one job to another People who leave their job to look for another Structural Unemployment Structural Unemployment Unemployment that occurs as a result of changes in technology Seasonal Unemployment Seasonal Unemployment People who work during certain seasons due to fluctuation of need for work Cyclical Unemployment Cyclical Unemployment Unemployment due to recessions and economic downturns

5. Natural Rate of Unemployment frictional and structural unemployment Full employment is achieved when the number of workers seeking jobs is satisfied by the number of jobs available. (Someone may be unemployed because the jobs that are open are not to their liking.) FULL EMPLOYMENT IS NOT 0. THERE ARE ALWAYS PEOPLE LOOKING FOR JOBS. GDP Gap amount by which actual GDP falls short of potential GDP because of unemployment Natural Rate of Unemployment

9. Review Does the unemployment rate accurately estimate the number of people who are unemployed? Explain your answer. Explain the concept of full employment. Give an example not mentioned in the text of each of the major types of unemployment.