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Unemployment Vocab
Chapter 14
Term | Definition |
---|---|
Unemployment | People who are 16 years or older and have searched for a job, but are not employed |
Employed | Those what have worked at least one hour in the past two weeks |
Labor Force | The number of employed persons plus the number of unemployed persons |
Unemployment Rate | The percentage of the labor force that is not currently employed |
Employment-to-population Ratio | The percentage of the working age population that is classified as employed |
Marginally Attached Workers | Not considered in the official unemployment rate; People who are ready and available to work, conducting a job search for the past 12 months, and haven't searched in the past 4 weeks |
Discouraged Workers | People who are looking for employment, but have temporarily given up |
U1 | People who have been unemployed for 15+ weeks |
U2 | Those who lost their job, as opposed to quitting or who are entering/ re-entering the labor force |
U3 | Those who fall between the cracks of official rate of unemployment |
U4 | Discouraged workers |
U5 | Marginally attached workers |
U6 | All types of unemployed people plus those that are part time |
Frictional Unemployment | When people voluntarily enter the labor force, but who are in between qualified jobs with a specific skill set |
Structural Unemployment | Job seekers' skill set are not in demand because of geography of obsolescence |
Creative Destruction | When old technologies and industries are destroyed, freeing up the resources for the new technology and industry |
Efficiency Wages | Exceeds the equilibrium market wage in order to encourage productivity |
Cyclical Unemployment | Contractions in the business cycle |
Full Unemployment | Cyclical unemployment is not present; economic nirvana |
Natural Rate of Unemployment | Unemployment independent of the inflation rate |