Notes on Chapter 13, Section 1, dealing with Unemployment

1. BELL RINGER 05.06.2015
Write complete question and answer on your Bell Ringer form.
Write down every
word or idea you
associate with the
term
“unemployment.”

2. ECONOMICS
May 6, 2015
Chapter 13: Economic Challenges
Section 13.1: Unemployment

3. BASIC UNDERSTANDING
13.1
There is ALWAYS
unemployment, even in the best
economies.

4. FOUR TYPES OF UNEMPLOYMENT
13.1
Frictional
unemployment is
when you’re not
working but
looking for a job.

5. FOUR TYPES OF UNEMPLOYMENT
13.1
Seasonal
unemployment
is when your
work shuts
down for a
season.

6. Structural
unemployment is
when your skills
don’t match the
jobs that are
available.
FOUR TYPES OF UNEMPLOYMENT
13.1
New technology
New resources
Changes in demand
Globalization
Lack of education

7. FOUR TYPES OF UNEMPLOYMENT
13.1
Cyclical
unemployment is
when
unemployment
rises in bad
times and falls in
good times.
Workers laid off
Expectation of jobs
coming back
Unemployment
insurance
established by Social
Security Act of 1935.

8. MEASURING EMPLOYMENT
13.1
The Department of Labor checks a
sample of the population (50,000
families) based on the latest
census.

9. MEASURING EMPLOYMENT
13.1
employed + unemployed = labor
force
(unemployed / labor force)100 =
unemployment rate (%)

10. MEASURING EMPLOYMENT
13.1
The monthly unemployment rate
usually is “seasonally adjusted” so
a more fair comparison can be
made to other months.

11. FULL EMPLOYMENT
13.1
The term full employment refers to
a period where no cyclical
unemployment exists.

12. FULL EMPLOYMENT
13.1
People who are highly skilled in a
low-skill job or who is educated and
trained for a job in a field with few
possibilities are called
underemployed.

13. FULL EMPLOYMENT
13.1
Discouraged workers have been
unemployed for some time and
have given up on finding work.
Discouraged workers do not show
up in the unemployment figures.

14. FULL EMPLOYMENT
13.1
Terrorism affect full employment as
it can shut some industries down
(travel, construction).

15. CHECK QUESTION 13.1
Write complete question and answer on your Bell Ringer form.
Why isn’t full employment the same as
zero unemployment?