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Chp 14:unemployment
| Term | Definition |
|---|---|
| unemployed | sixteen years of age or older are considered unemployed if they actively searched for work in the last four weeks but are currently not employed. |
| employed | are those who have worked at least one hour in the previous two weeks |
| labor force | the number of employed plus unemployed people age sixteen and over |
| 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 |
| marginally attached workers | these people ready and available to work who have conducted a job search within the past 12 months but have not searched in the last 4 weeks and are therefore not included in official unemployment statics |
| discouraged workers | people who have given up the job search and are officially classified as unemployed |
| structural unemployment | caused by permanent destruction of jobs in a dying industry, a mismatch between the skills necessary for employment and the seekers' skill set, and government programs that create incentives to remain unemployed |
| frictional unemployment | voluntary unemployment that occurs when a person enters the labor force and looks for a job. A recent graduate looking for her first job out of college would be an example of frictional unemployment |
| creative destruction | ongoing process of technological innovation and industrial decline. |
| U3 | the official unemployment rate |
| U1 | the unemployment rate that only includes people unemployed fifteen weeks or longer |
| U5 | the unemployment rate that includes all marginally attached workers |
| U2 | the unemployment rate that 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 |
| U6 | the most all-inclusive measure of unemployment as published by the BLS. Includes all those listed in U1-U5 plus those who are employed part time because of economic reasons |
| U4 | the unemployment rate that adds discouraged workers to the official unemployment rate |
| efficiency wages | a wage that exceeds the market wage. Encourages worker productivity but also plays a role in creating unemployment |
| cyclical unemployment | unemployment associated with downturns in the business cycle. most economist view this as harmful and believe that government intervention is necessary to prevent it from occuring |
| full employment | the level of employment that exist when the economy is being productively efficient |
| natural rate of unemployment | the rate of unemployment that exist when there is no cyclical unemployment present in the economy. The natural rate of unemployment is thought to be independent of the inflation rate |
Created by:
juliabowman
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