• Like
Ch20
Upcoming SlideShare
Loading in...5
×

Ch20

  • 75 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
75
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
4
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Unemployment Principles: Chapter 28 PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 1permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
  • 2. Identifying Unemployment • Employed – People who work • Unemployed – Not employed • Want to work • Looking for a job • Not in the labor force – Not employed – Not unemployed© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 2permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
  • 3. Figure 1The Breakdown of the Population in 2009 The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force.© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 3permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
  • 4. Identifying Unemployment • Labor force • Total number of workers, employed and unemployed = Number of employed + Number of unemployed • Unemployment rate – % of labor force that is unemployed Number of unemployed Unemployment rate = × 100 Labor force© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 4permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
  • 5. Identifying Unemployment • Labor-force participation rate – Percentage of the total adult population that is in the labor force – Fraction of the population that has chosen to participate in the labor market Labor force Labor - force participation rate = × 100 Adult population© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 5permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
  • 6. Table 1The Labor-Market Experiences of Various DemographicGroups This table shows the unemployment rate and the labor-force participation rate of various groups in the U.S. population for 2009.© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 6permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
  • 7. Identifying Unemployment • Labor-market experiences – Women ages 20 and older • Lower rates of labor-force participation than men – Blacks and teenagers • Much higher rates of unemployment© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 7permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
  • 8. Figure 3Labor-Force Participation Rates for Men and Women since 1950 This figure shows the percentage of adult men and women who are members of the labor force. Over the past several decades, women have entered the labor force, and men have left it.© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 8permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
  • 9. Labor-force participation of men and women in the U.S. economy • Participation rates in 1950 – Women: 33% working or looking for work – Men: 87% working or looking for work • Participation rates in 2009 – Women: 59% working or looking for work – Men: 72% working or looking for work© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 9permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
  • 10. Labor-force participation of men and women in the U.S. economy • Women’s rising participation rate – Changed dramatically over the past century – New technologies • Reduced the amount of time required to complete routine household tasks – Improved birth control • Reduced the number of children born to the typical family – Changing political and social attitudes© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 10permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
  • 11. Identifying Unemployment • Some of those who are out of labor force – May want to work • Discouraged workers • Discouraged workers – Individuals who would like to work – Have given up looking for a job© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 11permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
  • 12. Figure 2Unemployment Rate since 1960 This graph uses annual data on the U.S. unemployment rate to show the percentage of the labor force without a job. The natural rate of unemployment is the normal level of unemployment around which the unemployment rate fluctuates.© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 12permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
  • 13. Identifying Unemployment • Natural rate of unemployment (full employment) – Around which the unemployment rate fluctuates – Include unemployment types (frictional & structural) other than cyclical • Cyclical unemployment – Deviation of unemployment from its natural rate© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 13permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
  • 14. Identifying Unemployment • Unemployment rate – Never falls to zero – Always some (natural) unemployment: why? • Frictional unemployment – It takes time for workers to search for the jobs that best suit their tastes and skills – Explain relatively short spells of unemployment – Inevitable in free market economy© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 14permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
  • 15. Identifying Unemployment • Structural unemployment – Results because of changes in industry, such as outsourcing and technology improvements – Results when wages are set above the equilibrium • Minimum-wage laws, unions etc. – Explains longer spells of unemployment© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as 15permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.