macro ch 29 Flashcards
what makes someone employed
paid employees, self-employed, and unpaid workers in a family business.
what makes someone unemployed
people not working AND who have looked for work during previous 4 weeks.
what makes someone not apart of the labor force?
not working AND not
looking for work (examples: students, retirees, discouraged workers)
how do you calculate the unemployment rate
=100 x # of unemployed / labor force
how do you calculate the labor force participation rate
= 100 x labor force/ adult population (anyone 16 or older)
how do you calculate who is in the labor force
= employed + unemployed
how do you calculate the adult population?
=labor force + not in the labor force
what is cyclical unemployment?
the economy goes through ups and downs; when it enters a recession more people become unemployed
what is frictional unemployment
when people are temporarily out of work because they’re looking for a job that suit their skills and preferences
what is structural unemployment
when people can’t find jobs because their skills don’t match what employers need
This can occur when industries change or new technology replaces certain jobs.
how can the government help the unemployed
job search: the process of matching workers with appropriate
jobs
government employment agencies
public training programs
what is unemployment insurance
a government program that helps workers keep some of their pay when they lose their jobs.
what happens when minimum wage exceeds the equilibrium
structural unemployment
what are unions
a group of workers that talks to employers to negotiate things like pay, benefits, and working conditions
what are the differences between union shop and right to work states
“union shop” – workers must
join a union or at least pay to
support their union as a
condition of employment.
“right to work” – workers are
not so required.
