Unemployment

1,093 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,093
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
32
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Unemployment

  1. 1. UNEMPLOYMENT<br />Dr. Cheryl Carleton<br />Fall, 2009<br />
  2. 2. R. Vazquez-Alvarez<br />Lecture 1<br />2<br />Measuring Unemployment<br /><ul><li>Civilian Noninstitutional Adult Population
  3. 3. All civilians 16 years of age and older
  4. 4. Excludes institutionalized in prisons or mental hospitals
  5. 5. Excludes those in military
  6. 6. Labor force
  7. 7. Those in the adult population who are either working or looking for work</li></li></ul><li>LABOR FORCE PARTICIPATION RATE<br />
  8. 8.
  9. 9. LABOR FORCE PARTICIPATION<br />TOTAL MEN WOMEN YOUTH(16-19)<br />1999 67.1% 74.7 60.1 52.0<br />2000 67.2 74.6 59.8 51.7<br />2001 66.7 74.3 59.7 48.9<br />2005 66.0 73.2 59.3 43.5<br />2006 66.3 73.5 59.5 43.4<br />2007 65.9 73.0 59.3 41.3<br />2008 65.9 72.7 59.5 38.9<br />2009 64.9 71.4 58.7 35.8<br />
  10. 10. LFP BY AGE AND GENDER<br />WOMEN MEN<br />1988 1998 2008 1988 1998 2008<br />25 – 54 72.7 76.5 75.8 93.6 91.8 90.5<br />55 + 22.3 25.0 33.9 39.9 39.1 46.0<br />65+ 7.9 8.6 13.3 16.5 16.5 21.5<br />75+ 2.4 2.9 5.2 7.4 7.5 10.4<br />
  11. 11. DEFINING AND MEASURING UNEMPLOYMENT<br /><ul><li>employed Any person 16 years old or older
  12. 12. (1) who works for pay, either for someone else or in his or her own business for 1 or more hours per week;
  13. 13. (2) who works without pay for 15 or more hours per week in a family enterprise; or
  14. 14. (3) who has a job but has been temporarily absent, with or without pay.</li></li></ul><li>R. Vazquez-Alvarez<br />Lecture 1<br />8<br />Measuring Unemployment<br /><ul><li>Unemployed
  15. 15. Those with no job who are looking for work
  16. 16. Unemployment rate
  17. 17. Measures the percentage of those in the labor force who are unemployed
  18. 18. Equals the number unemployed divided by the number in the labor force
  19. 19. Does not include discouraged workers
  20. 20. Discouraged workers
  21. 21. Those who are no longer looking for work but are unemployed </li></li></ul><li>UNEMPLOYMENT<br />
  22. 22. UNEMPLOYMENT, DECEMBER 2010<br />OVERALL: 9.4%<br />LFP fell to 64.3%<br />
  23. 23. UNEMPLOYMENT<br />What does this leave out?<br />Those ready to work but not actively looking.<br />Part-time workers looking for full-time work<br />
  24. 24. ALTERNATIVE MEASURES OF UNEMPLOYMENT<br />U-6: Unemployed, plus marginally attached, plus employed part time for economic reasons:<br />Dec., 2009 Aug.,2010 Oct., 2010 Dec., 2010<br />17.2% 16.7% 17.0% 16.7%<br />
  25. 25. ALTERNATIVE MEASURES OF UNEMPLOYMENT<br />U-1: persons unemployed 15 weeks or longer, as a percent of the civilian labor force<br />Dec., 2009 Aug., 2010 Oct. 2010 Dec. 2010<br />5.8% 5.5% 5.7% 5.6%<br />
  26. 26. R. Vazquez-Alvarez<br />Lecture 1<br />14<br />DEFINITION OF TERMS FOR PREVIOUS TABLE:<br />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.<br />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.<br />
  27. 27.
  28. 28. 16<br />Sources of Unemployment<br /><ul><li>Frictional
  29. 29. Seasonal
  30. 30. Structural
  31. 31. Cyclical</li></li></ul><li>17<br />
  32. 32. 18<br />Full Employment<br /><ul><li>Occurs only if there is no cyclical unemployment
  33. 33. Occurs when the only unemployment is frictional, structural, or seasonal
  34. 34. Does not mean zero unemployment
  35. 35. Frictional, seasonal, and structural unemployment can still occur
  36. 36. Occurs when from 4% to 6% of the labor force is unemployed</li></li></ul><li>19<br />UNEMPLOYMENT<br />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.<br />

×