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 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 divided force by the working age population. |
employment-to-population-rate | The number of employed people divided by the working age population. |
Marginally attached workers | These are people ready and available to work who have applied in the past 12 months but no the pastn 4 weeks. |
"discouraged workers" | people who have given up the job search. |
U1 | The unemployment rate which includes people unemployed 15 weeks or longer. |
U2 | Unemployment rate which only includes people who have lost their jobs. |
U3 | The official unemployment rate posted by the BLS |
U4 | The unemployed rate that adds discouraged workers. |
U5 | The unemployment rate that includes all marginally attached workers |
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 government programs that create incentives to remain unemployed. |
creative destruction | when one industry dies then a new one takes up it's land, labor, capital, and entrepreneurship. |
Efficiency wages | A wage that exceeds the market wage, they pay workers more but take jobs away. |
Cyclical unemployment | unemployment associated with downturns in the business cycle |
Full employment | The level of employment exists when the economy is being productively efficient. |
natural rate of employment | The rate of unemployment that exists when their is no cyclical unemployment present in the economy |