quiz 5 Flashcards
employed
someone who is currently working, even if they are temporarily on leave
unemployed
someone who is not currently working and is available or looking
labor force
sum of people unemployed and employed
unemployment rate
the percentage of people in labor force unemployed
discouraged workers
people who are avaible but have not looked for a job in past 4 weeks due to not believing there is a job for them
unemployment rate
measures the amount in labor force unemployed calculation= unemployed/labor force
employment pop ratio
measures % of working age employed, calc= employed/working age pop
Problems with Unemployment rate
Distringuishing between unemployed and discouraged workers, counting part time jobs makes employment seem better than reality
LFP
Higher LFP, higher GDP, higher labor available
LFP TRENDS
Men have gone down, women have gone up, overall trend has gone up
2007-2009 Recesh
Extremely severe, 2.3 mil jobs lost, high unemployment rate low gdp, slow and uneven comeback
2019 recesh
real gdp low, worse than 2008, more gov spending and rapid recovery
labor market churn
economy creating and destroying jobs, firms are constantly shutting down and starting up, results from technological, customer taste
unemployment calc
unemployed/labor force
frictional unemployment
short term, process of matching workers with correct jobs, ex: seasonal employment, increases economic efficency
