Those who are no longer looking for work but are unemployed
UNEMPLOYMENT, DECEMBER 2010 OVERALL: 9.4% LFP fell to 64.3%
UNEMPLOYMENT What does this leave out? Those ready to work but not actively looking. Part-time workers looking for full-time work
ALTERNATIVE MEASURES OF UNEMPLOYMENT U-6: Unemployed, plus marginally attached, plus employed part time for economic reasons: Dec., 2009 Aug.,2010 Oct., 2010 Dec., 2010 17.2% 16.7% 17.0% 16.7%
ALTERNATIVE MEASURES OF UNEMPLOYMENT U-1: persons unemployed 15 weeks or longer, as a percent of the civilian labor force Dec., 2009 Aug., 2010 Oct. 2010 Dec. 2010 5.8% 5.5% 5.7% 5.6%
R. Vazquez-Alvarez Lecture 1 14 DEFINITION OF TERMS FOR PREVIOUS TABLE: MARGINALLY ATTACHED WORKERS: persons who currently are neither working nor looking for work but indicate they want and are available for a job and have looked for work sometime in the recent past. PERSONS EMPLOYED PART TIME FOR ECONOMIC REASONS are those who want and are available for full-time work, but have had to settle for a p-t schedule.
Frictional, seasonal, and structural unemployment can still occur
Occurs when from 4% to 6% of the labor force is unemployed
19 UNEMPLOYMENT NATURAL RATE OF UNEMPLOYMENT: the unemployment rate that occurs as a normal part of the functioning of the economy. Sometimes taken as the sum of frictional, structural and seasonal unemployment.