TYPES OF UNEMPLOYMENT Frictional Structural Seasonal Cyclical Frictional

  • Slides: 17
Download presentation
TYPES OF UNEMPLOYMENT �Frictional �Structural �Seasonal �Cyclical

TYPES OF UNEMPLOYMENT �Frictional �Structural �Seasonal �Cyclical

Frictional Unemployment �Occurs when people take time to find a new job �Changing jobs,

Frictional Unemployment �Occurs when people take time to find a new job �Changing jobs, layoffs, finish school, etc. �Collecting unemployment insurance may increase frictional unemployment

Structural Unemployment �Occurs when people’s skills don’t match available jobs. �Causes: ◦ ◦ Development

Structural Unemployment �Occurs when people’s skills don’t match available jobs. �Causes: ◦ ◦ Development of new technology New Resources Globalization Lack of Education

Seasonal Unemployment �Occurs as a result of harvest schedules, vacations, or seasonal shifts �Examples:

Seasonal Unemployment �Occurs as a result of harvest schedules, vacations, or seasonal shifts �Examples: ◦ Golf Course Personnel ◦ Migrant workers in Michigan orchards ◦ Ski Lodge Personnel in Stowe, VT

Cyclical Unemployment �Occurs during economic downturns and falls during periods of economic growth �Recessions

Cyclical Unemployment �Occurs during economic downturns and falls during periods of economic growth �Recessions (people demand fewer goods, people laid off)

INFLATION How do you measure? Consumer Price Index

INFLATION How do you measure? Consumer Price Index

Consumer Price Index �Determines how much prices are increasing (inflation) �Measures the current price

Consumer Price Index �Determines how much prices are increasing (inflation) �Measures the current price of all goods and compares them to prices from previous years �This is calculated every month by the Bureau of Labor Statistics (BLS)

“Market Basket Items” cereal coffee chicken restaurant tuition postage telephone computers

“Market Basket Items” cereal coffee chicken restaurant tuition postage telephone computers

“Market Basket Items”

“Market Basket Items”

Calculating the Consumer Price Index latest “market basket” (avg of all current prices) CPI

Calculating the Consumer Price Index latest “market basket” (avg of all current prices) CPI = updated prices x 100 base period prices (2013 prices) $360 x 100 = 180 CPI = $200 (prices from 1982 -1984) base period 1982 -1984 CPI is set at 100 180 100 80% increase March CPI Statistics

Causes of Inflation �Growth of Money Supply �Changes in Aggregate Demand ◦ if demand

Causes of Inflation �Growth of Money Supply �Changes in Aggregate Demand ◦ if demand goes up, prices go up �Changes in Aggregate Supply ◦ producers raise prices to meet higher costs

More money to spend increases demand (AGGREGATE DEMAND) Higher costs (wages) increase prices (AGGREGATE

More money to spend increases demand (AGGREGATE DEMAND) Higher costs (wages) increase prices (AGGREGATE SUPPLY)

POVERTY

POVERTY

POVERTY THRESHOLD

POVERTY THRESHOLD

POVERTY RATES BY GROUP, 2006

POVERTY RATES BY GROUP, 2006

GROWTH OF WELFARE $927 B 2012 What program (president) started the true growth of

GROWTH OF WELFARE $927 B 2012 What program (president) started the true growth of welfare programs? ~ $44, 000 for each person in poverty Lyndon Johnson’s “Great Society”

Macroeconomics Topic Frictional unemployment Structural unemployment Cyclical unemploymentMacroeconomics Topic Frictional unemployment Structural unemployment Cyclical unemployment
Labor Chapter 9 Unemployment Frictional Unemployment Unemployment thatLabor Chapter 9 Unemployment Frictional Unemployment Unemployment that
Types of Unemploymentpart III continued frictional structural cyclicalTypes of Unemploymentpart III continued frictional structural cyclical
Types of Unemployment Frictional Unemployment Occurs when peopleTypes of Unemployment Frictional Unemployment Occurs when people
Unemployment Three Types of Unemployment Frictional temporary transitionalUnemployment Three Types of Unemployment Frictional temporary transitional
Ch 13 Economic Challenges Unemployment Frictional Unemployment LookingCh 13 Economic Challenges Unemployment Frictional Unemployment Looking
CYCLICAL STOCKS CYCLICAL STOCKS As individual we allCYCLICAL STOCKS CYCLICAL STOCKS As individual we all
Statistics Cyclical Time Series Cyclical Forecasting Time seriesStatistics Cyclical Time Series Cyclical Forecasting Time series
Unemployment Types Part VII Unit 2 Summary FRICTIONALUnemployment Types Part VII Unit 2 Summary FRICTIONAL
UNEMPLOYMENT What is Unemployment In economics unemployment refersUNEMPLOYMENT What is Unemployment In economics unemployment refers
Unemployment Unemployment in the U S OECD unemploymentUnemployment Unemployment in the U S OECD unemployment
Unemployment Chapter 28 IDENTIFYING UNEMPLOYMENT How Is UnemploymentUnemployment Chapter 28 IDENTIFYING UNEMPLOYMENT How Is Unemployment
Economic Challenges Unemployment The Unemployment Rate The unemploymentEconomic Challenges Unemployment The Unemployment Rate The unemployment
Chapter 15 Unemployment Identifying Unemployment How is unemploymentChapter 15 Unemployment Identifying Unemployment How is unemployment
Low Unemployment Low Inflation Unemployment Unemployment Key TermsLow Unemployment Low Inflation Unemployment Unemployment Key Terms
Unemployment 1 Unemployment The concept of unemployment isUnemployment 1 Unemployment The concept of unemployment is