Chapter 8 Flashcards
Employment
total # of people in economy aged 15 or older working full or part time
Employment rate equation
(#of employed/ population 15 years or older)x100
Unemployment criteria (3)
- Does not currently have paid job
- Available for work and 15 years of age
- actively looking for job in past 4 weeks
unemployment
total number of available people aged 15 or older are currently not employed and are looking for work
unemployment rate
percent of the total number of people in labour force unemployed
unemployment rate equation
(#of unemployed workers/labour force)x100
what 2 things make up the Labor Force
sum of employment plus and unemployment
Labor Force participation rate
percentage of population aged 15 or older in labour force
labor force participation rate equation
(labor force/population aged 15 older)x100
Does unemployment still rise even after a recession
yes because economy doesn’t recover instantly
Pros of Unemployment rate graph
good indicator of likelihood to find a job
cons of unemployment rate graph
overstates and understates true level of unemployment
unemployment graph overstates example
normal to take time finding a job but when jobs are high, people refuse positions
unemployment graph understates examples (3)
- Discouraged worker
- marginally attached worker
- underemployed
Discouraged workers
those given up looking for work because they have little to no chance
Marginally attached worker
like to be employed, stopped looking for more then 4weeks, may be waiting for employment to begin
underemployed
people who work part-time, or do not maximize skills in current job
Job search
workers looking for employment