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14 Cards in this Set

  • Front
  • Back
Working age population
total number of people age 16 and over not in jail, hospital or other institutional care
Labor force:
number ppl employed plus number unemployed
You are employed if...
you worked atleast 1 hour as paid employee or worked 15 hours or more as unpaid worker in family business

Were not working but had jobs or businesses from which they were temporarily absent
Unemployed if
Had no employment

Were available for work
And either
Had made specific efforts to find employment some time during previous 4 weeks

were waiting to be recalled to job from which had been laid off.
Two main labor market indicators:
THe unemployment rate
labor force participation rate
Unemployment rate:
% of people in the labor force
=#ppl unemployed/Labor force X100
discouraged workers dont count
Costs of unemployment
If ppl not workign that is forgone output (okuns law=1%on unemp rate=2%lost output)

Psychosocial costs

Dynamic costs
If business improves then...
Increased ouput per worker hour (increased productivity)

Hours per workweek increase

Increae in number ppl employed
Types of unemployment
Frictional, cyclical, and structural
What is frictional unemployment
Arises from normal labor turnover, people entering and leavignlavor force from ongoing creation and destruction of jobs
What is Structural unemployment
arises when changes in technology or international competition change the skills needed to perform jobs or change locations of jobs
What is cyclical unemployment?
The fluctuating unemployment over the business cycle. This increases during recession and decreases during an expansion
Full employment
When there is no cyclical unemployment or when all the unemployment is frictional and structural
Natural unemployment rate
When unemployment rate is at full employment