Unemploym ent Civilian Labor Force 0 Total of

Unemploym ent

Civilian Labor Force 0 Total of employed and unemployed people 0 Above 16 years old 0 Able & willing to work 0 Not institutionalized (jail, hospitals) 0 Not in military, school full time, or retired

Unemployment Rate 0 Percent of people in labor force who actively want a job but are not employed Unemployment rate = unemployed labor force x 100

Types of Unemployment 0 Frictional 0 Seasonal 0 Structural 0 Technological 0 Cyclical

Frictional Unemployment 0 Qualified workers with transferable skills that are between jobs or temporarily unemployed This college grad is looking for his first job.

Seasonal Unemployment 0 Type of frictional unemployment 0 Jobs appear seasonally and come back each year Santa will be unemployed by December 26.

Structural Unemployment 0 Due to changes in technology or the labor force 0 Workers no longer have transferable skills 0 Jobs won’t return The competition for a job is fierce.

Technological Unemployment 0 Jobs replaced by machines or other equipment Sure, they’re cute, but they could replace you.

Cyclical Unemployment 0 Due to economic downturns, like recessions and depressions There was high unemployment during the Great Depression.

Underemployment 0 Employed at jobs below their capability level 0 Employed part-time when they want full-time work

Discouraged Worker 0 Drop out of labor force 0 Would still accept a job if it were available He got discouraged looking for a job.

Natural Rate of Unemployment 0 Frictional unemployment & structural unemployment are unavoidable 0 Together, they make up natural rate of unemployment

Full Employment 0 No cyclical unemployment 0 Same as Natural Rate of Unemployment = 4 -6% unemployment is “full employment”