Unemployment Economics 2
What is it?! <ul><li>It is not just personal…it is an issue for the national economy as well </li></ul><ul><li>Can measure...
Frictional <ul><li>Occurs when people take time to find a job </li></ul><ul><ul><li>Changing jobs </li></ul></ul><ul><ul><...
Seasonal <ul><li>Occurs when industries slow or shut down for a season or make seasonal shifts in their production schedul...
Structural  <ul><li>Occurs when workers’ skills do not match the jobs that are available. </li></ul><ul><li>Five major cau...
Cyclical  <ul><li>Unemployment that rises during economic downturns and falls when the economy improves </li></ul><ul><li>...
Measuring Employment <ul><li>The government keeps track of how many people are unemployed and why </li></ul><ul><li>Census...
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Unemployment

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Unemployment

  1. 1. Unemployment Economics 2
  2. 2. What is it?! <ul><li>It is not just personal…it is an issue for the national economy as well </li></ul><ul><li>Can measure health of economy by the unemployment rate </li></ul><ul><li>Four kinds: </li></ul><ul><ul><li>Frictional </li></ul></ul><ul><ul><li>Seasonal </li></ul></ul><ul><ul><li>Structural </li></ul></ul><ul><ul><li>Cyclical </li></ul></ul>Poor Man’s Water Heater
  3. 3. Frictional <ul><li>Occurs when people take time to find a job </li></ul><ul><ul><li>Changing jobs </li></ul></ul><ul><ul><li>Laid off </li></ul></ul><ul><ul><li>After college </li></ul></ul><ul><ul><li>Unsatisfaction </li></ul></ul><ul><li>There are many people in this category </li></ul><ul><li>Not who we consider “poor” </li></ul>What poor college students eat!
  4. 4. Seasonal <ul><li>Occurs when industries slow or shut down for a season or make seasonal shifts in their production schedules. </li></ul><ul><li>Can also result from harvest schedules or vacations…ie School out for summer! </li></ul><ul><li>Soon you and I will be seasonally unemployed! </li></ul><ul><li>This is a normal part of a healthy economy </li></ul><ul><li>This can be difficult for migrant workers </li></ul>The Grape Picker
  5. 5. Structural <ul><li>Occurs when workers’ skills do not match the jobs that are available. </li></ul><ul><li>Five major causes </li></ul><ul><ul><li>Development of new technology </li></ul></ul><ul><ul><li>Discovery of new resources </li></ul></ul><ul><ul><li>Changes in consumer demand </li></ul></ul><ul><ul><li>Globalization </li></ul></ul><ul><ul><li>Lack of education </li></ul></ul>Street Cleaner!
  6. 6. Cyclical <ul><li>Unemployment that rises during economic downturns and falls when the economy improves </li></ul><ul><li>Recession=lower demand for labor </li></ul><ul><li>Many laid off employees will be rehired when the economy improves </li></ul><ul><li>This can stress the economy </li></ul>Does Britney fit in this category?!
  7. 7. Measuring Employment <ul><li>The government keeps track of how many people are unemployed and why </li></ul><ul><li>Census: official count of the population </li></ul><ul><ul><li>Department of Labor </li></ul></ul><ul><ul><li>Computes unemployment rate, or the percentage of the labor force that is unemployed </li></ul></ul><ul><li>Add up the number of employed and unemployed people. That equals the labor force. Then divide the number of unemployed by the total labor force and x by 100. </li></ul>

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