Gross Measures- Employment/Unemployment Flashcards
Who determines employment/unemployment data?
BLS- Bureau of Labor Statistics (BLS)
How does the BLS collect data?
Current employment survey
- Monthly survey of 160,000 businesses and government
- Includes industry and geographical area data
Current Population Survey
- Monthly survey of 160,000 households
What takes a person out of the labor force?
1) Under 16 years old
2) Retired
3) Not seeking work
4) Active Work
What are the categories of unemployment?
Frictional Unemployment
Structural Unemployment
Seasonal Unemployment
Cyclical Unemployment
What is frictional unemployment?
Those in the labor force because they are:
- In transition between jobs
- Don’t have information needed to get matched up with an employer
What is structural unemployment?
Those who are not employed because:
- The need for prior types of jobs have been reduced or eliminated
- Lack skills for currently available jobs
What is seasonal unemployment?
Those out of work because their jobs are regularly and predictably vary by the season of the year
- School bus drivers… don’t work in the summers
What is Cyclical Unemployment
Those who are not employed because of a downturn in the business cycle- An economic downturn or recession and has caused the demand for employment to decrease.
- This is of greatest policy concern.
How is unemployment rate calculated?
Percentage of the LABOR FORCE not employed.
NOT NOT NOT the percentage of population not employed
What is the natural unemployment rate?
Those unemployed due to frictional, structural, and seasonal reasons (regardless of the state of the economy)
What is full employment?
Only when there is no cyclical unemployment
- Frictional, structural, and seasonal are NOT founded for FULL EMPLOYMENT
