2. Who is employed? Civilian Labor Force: +16, working, or looking. An employed person is any person 16 years old or older 1.who works for pay, either for someone else or in his or her own business for 1 or more hours per week (Part time workers) 2.who works without pay for 15 or more hours per week in a family enterprise, or 3.who has a job but has been temporarily absent, with our without pay.

3. Who is unemployed? An unemployed person is a person 16 years old or older who: 1. is not working, 2.is available for work, and 3.has made specific efforts to find work during the previous 4 weeks. A person who is not looking for work, either because he or she does not want a job or has given up looking, is not in the labor force.

4. CALCULATING UNEMPLOYMENT The formula for calculating the unemployment rate (expressed as a percent) is as follows: Unemployment Rate = (Unemployed Workers / Total Labor Force) * 100 Full Employment = 4-5% Unemployment

5.  December 2007 start of the recession: Unemployment 5.0 %  September 2011 9.1 %  January 2014 6.6 % (12.6% Marginally Attached )  Currently about 13 million unemployed  6 million have been unemployed for six months = post WWII record  Discouraged Workers = 6.4 million  Underemployed = 18.6%

6. Unemployment & LEVEL OF EDUCATION Dec, 2012 Sept, 2010 Less than H.S. 11.7% 15.0% H.S. no college 8.0%10.8% Some college 6.9% 8.6% College Grad 3.9% 4.8%

7. Types of Unemployment Seasonal: Seasonal unemployment happens when a workers job is only in existence for part of the year. Examples???

8. Types of Unemployment Frictional: Frictional unemployment happens when a worker leaves one job to find a better opportunity for their skills, or when people are just entering the job market as a result of graduation.

9. Types of Unemployment Structural: Structural unemployment happens when peoples skills no longer match the available jobs in an economy. (Job relocates or replaced by technology.) Structural unemployment is the most difficult of the three types to correct. (Education / Skills / Training)

10. Types of Unemployment Cyclical: Is countercyclical to the business cycle. Cyclical unemployment goes up when the business cycle moves through contraction or recession, and decreases when the economy moves into expansion. Economic Cycle!!!

11. Laws or Theories? Okun's Law: (Unemployment / GDP) 1% increase = 2% decrease