Unemployment
Notes from (2/4/16)
Unemployment- The failure to use available resources, particularly labor to produce desired goods and services
Labor Force- Above 16 years of age, Able and willing to work
NOT Labor Force- Military, Mental Institution Patients, Jail/ Prison, Retired, Students, Homemakers, Those not Looking for a Job
Standard Unemployment Rate- 4-5%, Means Full Employment or Natural Rate of Unemployment (NRU)
# of Unmployed
-------------------------------------------------- x 100
# of Unemployed + # of Employed
TYPES OF UNEMPLOYMENT
- Frictional- People who are searching for a job
- Temporarily unemployed
- In between jobs
- Have Transferable Skills
- Ex- High School/ College Grad looking for a Job, Leaving one Job to Look for a Better One
- Inevitable, NRU
- Structural- Changes in the structure of the labor force make some skills obsolete
- No Transferable Skills
- Ex- VCR Repair Man
- Inevitable, NRU
- Seasonal- Due to the time of the year and nature of the job
- Ex- Lifeguards, Santa Claus, Easter Bunny, School Bus Drivers, Construction Workers
- Cyclical- Unemployment that results from economic downturns
- Ex- A recession
- As demand for goods and services fall, demand for labor falls, thus workers are laid off
- Full Employment = No Cyclical Unemployment
-JaelyNoTainted
Like Jaelyn (SPACE) Not (SPACE) Tainted
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