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Unemployment
Economics
Question | Answer |
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unemployed | The condition of not having a job but being a member of a labor force. |
employed | The condition of having a job |
labor force | The number of employed plus unemployed people age sixteen and over. |
unemployment rate | The 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 are the people ready and available to work who have conducted a job search in the past twelve months but have not searched in the last four weeks and are therefore not included in the official unemployment statistics |
"discouraged" workers | People who, for whatever reason, have given up the job search and are not officially classified as unemployed. |
U1 | The unemployment rate that only includes people unemployed fifteen weeks or longer, as published by the BLS. |
U2 | The unemployment rate that only includes people who have lost a job as opposed to people who have quit or those who have entered or re-entered the labor force, as published by the BLS. |
U3 | The official unemployment rate published by the BLS. |
U4 | The unemployment rate that adds discouraged workers to the official unemployment rate, as published by the BLS. |
U5 | The unemployment rate that includes all marginally attached workers, as published by the BLS. |
U6 | The most all-inclusive measure of unemployment as published by the BLS. |
frictional unemployment | Voluntary unemployment that occurs when a person enters the labor force and looks for a job |
structural unemployment | Unemployment that is caused by the permanent destruction of jobs in a dying industry, a mismatch between the skills necessary for employment and the seekers' skill sets, and the government programs that create incentives to remain unemployed |
creative destruction | A term coined by the economists Joseph Schumpeter that refers to the ongoing process of technological innovation and industrial decline. |
efficiency wage | A wage that exceeds the market wage. |
cyclical unemployment | 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. |