Unemployment

1
Unemployment
2
Unemployment and the economy

• Loss of goods and services
• Loss of sales
• Government support

3
Measuring unemployment

• How many workers are unemployed?
• How long have they been jobless
• How does unemployment differ for specific
  industries and geographic regions

4
Identifying the employed and unemployed

• Census bureau
• Worked for pay or profit one or more hours
• Worked without pay in a family business 15 or
  more hours
• Have jobs but did not work as a result of
  illness, weather, vacations or labor disputes
• EMPLOYED

5
Unemployed

• 16 and up
• Actively looking for work
• Not in labor force

6
Who is counted?

• A 15 year old looking for a job
• A pregnant woman on maternity leave
• A 17 year old who wants a job but hasnt applied
  anywhere
• A 17 year old, who has never worked, but who has
  applied places but does not have a job

7
Unemployment rate

• Percentage of people in the civilian labor force
  who are unemployed
• Does not count armed forces
• Increase during times of recession
• Decrease during times of expansion

8
Problems with unemployment rate

• Does not measure all aspects of unemployment
• Does not indicate intensity with which people
  look for jobs
• Does not include people who have given up
  marginally attached workers
• Given up due to job related reasons discouraged
  workers
• Underemployed people

9
Underemployed population

• http//news.com.com/2100-1017-832553.html

10
Labor force statistics

• Broken down by specific groups
• Race
• Age
• Sex
• Marital status
• Industry
• Occupation

11
Unemployment rates

• http//data.bls.gov/map/servlet/map.servlet.MapToo
  lServlet?surveyla
• http//data.bls.gov/cgi-bin/surveymost

12
Determining full employment

• Does not mean unemployment is zero
• Some is natural
• 95 ok
• high unemployment high prices

13
Types of unemployment

• Page 252
• Frictional
• Structural
• Seasonal
• Cyclical