click below
click below
Normal Size Small Size show me how
Chapter 14
Vocab list-Unemployment
Term | Definition |
---|---|
Unemployed | The condition of not having a job but being a member of the labor force. |
Employed | The condition of having a job. |
Labor force | The number if employed plus unemployed people age sixteen and older. |
Unemployment rate | Is equal to the number of unemployed persons divided by the number of people in the labor force. |
Labor force participation rate | The labor force divided by the working age population. |
Employment to population ratio | The number of employed people divided by the working age population. |
Marginally attached workers | These people are ready to work who have conducted a job search in the last 12 months but not in the last four weeks, therefore not included in official employment. |
Discouraged workers | People for whatever reason have given up the job search and are not classified as unemployed. |
U1 | The unemployed rate that only includes people unemployed fifteen weeks or longer. |
U2 | Only includes people who have lost a job as opposed to those who have quit or reentered the labor force. |
U3 | Unofficial employment rate published by the BLS. |
U4 | Unemployment rate that adds discouraged workers to the official unemployment rate. |
U5 | Unemployment rate that includes all marginally attached workers, published by the BLS. |
U6 | Most all inclusive measure of unemployment. |
Frictional unemployment | Voluntary unemployment that occurs when a person enters the labor force looking for a job. |
Structural unemployment | Unemployment that is caused by the permanent destruction of jobs in the dying industry, mismatch between the skills necessary for employment. |
Creative destruction | Ongoing process of technological innovation and industrial decline. |
Efficiency wages | A wage that exceeds the market wage. |
Cyclical employment | Unemployment associated with downturns in the business cycle |
Full employment | The level of employment that exists when the economy is being productively efficient. |
Natural rate of unemployment | The rate of unemployment that exists when there is no cyclical unemployment present in the economy. |