UNEMPLOYMENT Flashcards
Who makes up the Civilian Labor Force?
- People who are employed - Full time, Temporary leave, Part time
- People who are unemployed - Do not work but make effort to find work
- Under employed - Only find part-time high skill and low money ( not in profession )
Who is not included in the Civilian Labor Force?
- Discouraged workers - Want to work but have stopped looking.
- Others who are excluded where measuring the labor force are: Full time students, active military, people 15 years old or younger, unpaid homemakers, retires, people in hospital or jail.
What is unemployment rate?
The percent of people in the labor force who want a job but are not working.
What is the formula for calculating unemployment rate?
Unemployment = # unemployed / # in labor force
rate x 100
To qualify as unemployed you must be:
- Jobless
- Looking for a job
- Available for work
What is frictional unemployment?
“Temporarily unemployed” or being between jobs.
Example :
- High school or college graduates looking for jobs.
- People that were fired or quit and are looking for a better job.
What is structural unemployment?
Changes in the structure of the economy make some skills/jobs absolute. People that were fired or quit and are looking for a better job
Example:
- VCR repairman
- Carriage makers
- Auto assemblers, who were fired as robots take over production.
What is cyclical unemployment?
Unemployment that results from economic downturns ( recession ). As demand for goods and services falls, demand for labor falls, and workers lose jobs.
Example:
- Steel workers laid off during recessions.
- Restaurant owners layoff waiters often months of poor sales sue to recession.
What is seasonal unemployment?
Seasonal unemployment: due to the time of year and the nature of the job.
Examples:
-Lifeguards in winter
-Santa’s Jan-Oct.
