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Unemployment
| Term | Definition |
|---|---|
| Unemployed | Persons 16 years or older that have actively searched for work in the last four weeks but aren't currently employed |
| Employed | Persons 16 years or older that have worked at least one hour in the previous two weeks |
| Labor force | The number of employed person plus the number of unemployed persons |
| Unemployment rate | A percentage of the labor force that is not currently employed |
| Labor force participation rate | The percentage of the working age population classified as employed or unemployed |
| Employment-to-population ratio | The percentage of the working age population that is classified as employed |
| Marginally attached workers | People ready and available to work, who have a conducted a job search within the past twelve months, haven't searched in the last four weeks |
| U1 | 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 those who have entered or re-entered the labor force |
| U3 | Official unemployment rate |
| U4 | Adds discouraged workers to the official unemployment rate |
| U5 | Includes all marginally attached workers |
| U6 | Includes all of the above plus those who are employed part-time because of economic reason |
| Frictional unemployment | Occurs when people voluntarily enter the labor force, or when they are between jobs for which they are qualified |
| Structional unemployment | Occurs when job seekers' skill sets aren't in demand because of geography or obsolescence |
| Creative destruction | As innovation occurs, old technologies and industries are destroyed, which frees up the resources for new technology and its industry |
| Efficiency wages | Wages that exceed the equilibrium market wage |
| Cyclical unemployment | Contractions in the business cycle |
| Full employment | Occurs when cyclical unemployment isn't present in the economy, the goal that policy makers seek to maintain |
| Natural rate of unemployment | The lowest rate of unemployment that an economy can sustain over the long run |
| Discouraged worker | Person of legal employment age who is not actively seeking employment or who does not find employment after long-term unemployment |
Created by:
AngelBrito
Popular Economics sets