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Lecture 12 unemployment
This document contains information about unemployment from a macroeconomics lecture. It defines key terms related to unemployment such as the unemployment rate, labor force participation rate, natural rate of unemployment, and types of unemployment like cyclical, frictional, and structural unemployment. It also provides details on how unemployment is measured in the U.S. by the Bureau of Labor Statistics through different surveys. Tables show breakdowns of the population, labor force, and unemployment rates.
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Lecture 12 unemployment
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- 5. Unemployment The Monetary System MoneyGrowth and Inflation
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- 7. Intellectual Financial Physical Human Culture Entrepreneur trust knowledge skills personality health relationships natural resources time buildings equipment thingsthan make things money and risk savers and borrowers time is money (1+r)n insurance limited liability corporations ideas technology methods
- 9. Key Terms labor force unemploymentrate labor-force participation rate natural rate of unemployment cyclical unemployment discouraged workers frictional unemployment structural unemployment job search unemployment insurance union collective bargaining strike efficiency wages
- 10. Unemployment How is itmeasured? Who measures it?
- 11. Adult Population Population age16 and older
- 12. Labor Force the totalnumber of workers, including employed and unemployed
- 13. Labor Force Participation Rate thepercent of the adult population that is in the labor force
- 14. Unemployment Rate the numberof the labor force that is employed
- 15. Employed paid employees work inown business unpaid workers in family business full-time and part-time jobs but temporary absence
- 16. Unemployed not employed available tried tofind a job in the last four weeks waiting to be recalled from layoff
- 17. Discouraged Workers People who wouldlike to work but have given up looking for a job
- 18. Not in LaborForce not employed or unemployed discouraged workers full-time student homemaker retiree
- 19. Unemployment Rate The percentageof the labor force that is unemployed
- 20. 16+ 79% Under 16 21% U.S Population millions% Under 16 66 21% 16+ 254 79% Total 320 100%
- 21. Unemployed 7.7 million 3% Employed152.3 million 60% Not in Labor Force 94 million 37% Adult Population
- 22. Unemployed 7.7 million 5% Employed152.3 million 95% Labor Force
- 23. millions % Population % Adults % Labor Force Population 320100% Age under 16 66 20% Age 16+ 254 80% 100% Not in Labor Force 94 30% 37% In Labor Force 160 50% 63% 100% Employed 152.3 47.6% 60% 95.2% Unemployed 7.7 2.4% 3% 4.8%
- 24. Bureau of LaborStatistics - Two Surveys The Current Population Survey (CPS) "household survey" Sample of 60,000 households. The Current Employment Statistics Survey (CES): "payroll survey" sample of 160,000 businesses and government agencies that represent 400,000 individual employees. Who Measures Unemployment?
- 25. U1: the percentageof labor force unemployed for 15 weeks or longer. U2: the percentage of labor force who lost jobs or completed temporary work. U3: the official unemployment rate that occurs when people are without jobs and they have actively looked for work within the past four weeks. U4: the individuals described in U3 plus "discouraged workers," those who have stopped looking for work because current economic conditions make them think that no work is available for them. U5: the individuals described in U4 plus other "marginally attached workers," "loosely attached workers," or those who "would like" and are able to work, but have not looked for work recently. U6: the individuals described in U5 plus part-time workers who want to work full-time, but cannot due to economic reasons, primarily underemployment. Six Measures of Unemployment
- 26. Labor-Force Participation Rate The percentageof the adult population (15+) that is in the labor force
- 27. Problems Overstate - Aboveactual Cash workers Understate - Below actual Discouraged workers
- 28. 1945 1950 19551960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Year 0 Numb 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Year 0 20 40 60 Shareofthecivilianlaborforce(%) Hover ov Adjust ye data disp Notes: Inc civilian no that are e looking fo persons 1 The comp data has b times by m changes in Survey. Source: 1 averages, Survey, U Statistics Graph by Men Women
- 29. Natural Rate of Unemployment Thenormal rate of unemployment around which the unemployment rate fluctuates
- 30. Cyclical Unemployment The deviation of unemploymentfrom its natural rate
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