Chapter 6/ Jobs & Unemployment Flashcards
What 2 categories is the population divided into?
- Working Age Population
2. Others
Define: Working Age Population
Total number of people that are 16 years old or above and are not institutionalized.
What 2 categories is the WAP divided into?
- Those in the labor force
2. Those who are not.
Define: Labor Force
The number of employed + The number of unemployed
What does “employed” mean?
- Worked one hour as paid employees or 15 unpaid hours in the family business.
- Aren’t working but had jobs from which they were temporarily absent from.
What does “unemployed” mean?
- Had no employment and were available for work.
- Made efforts to find a job for four weeks.
- Waiting to be recalled from a job that they had been laid off from.
What does it mean if a person is not “employed” or “unemployed” by definition?
They are not a part of the labor force.
What are the two main labor market indicators?
- The unemployment rate
2. The labor force participation rate
What is the formula for unemployment?
UER = # of people unemployed/labor force x 100
What indicates willingness of people in the WAP to take jobs?
The number of people in the labor force.
Define: Labor Force Participation Rate
The percentage of WAP who are members in the labor force.
What is the formula for LFPR?
LFPR = Labor force/Working Age Population x 100
What type of workers are omitted from the definition of unemployment?
- Marginally attached workers.
2. Part-time workers
Define: Marginally Attached Worker
One who is willing and available to take a job but has not been searching for one within the previous four weeks.
Define: Discouraged Worker
Marginally attached worker who has not made specific efforts to find a job because past searches have been discouraging.
