chap 15 Flashcards
(22 cards)
who does the unemployment stats?
bureau of labor statistics BLS
who is apart of the “adult population”
16 yrs and older
employed
paid employees, self-employed, and unpaid workers in a family business
unemployed
people not working who have looked for work during previous 4 weeks
not in the labor force
people who aren’t looking for work
labor force
the total # of workers, including the employed and unemployed
unemployment rate (u-rate)
the % of the labor force that is unemployed
u-rate equation
100 * (# of unemployed)/(labor force)
labor force participation rate
% of the adult population that is in the labor force
labor force participation rate equation
100 * (labor force)/(adult population)
what makes the u-rate imperfect?
excludes: discouraged workers, the distinguish between full and part time
some people misreport their work status
natural rate of unemployment
the normal rate of unemployment around which the actual unemployment rate fluctuates
cyclical unemployment
the deviation of unemployment from its natural rate
frictional unemployment
occurs when workers spend time searching for the jobs that best suit their skills and taste
short term usually
structural unemployment
occurs when there are fewer jobs than workers
usually longer-term
job search
the process of matching workers with appropriate jobs
sectoral shifts
changes in the composition of demand across industries or regions of the country
gov’t employment agencies
provide information about job vacancies to speed up the matching of workers with jobs
public training programs
aim to equip workers displaced from declining industries with the skills needed in growing industries
unemployment insurance (UI)
a gov’t program that partially protects workers’ incomes when they become unemployed, increases frictional unemployment
union
a worker association that bargains with employers over wages, benefits, and working conditions
theory of efficiency wages
firms voluntarily pay above eq’m wages to boost worker productivity
