Unemployment Flashcards
the amount of unemployment that the economy normally experiences
Natural Rate of Unemployment
Year-to-year fluctuations in unemployment around its natural rate (associated with short-run ups and downs of economic activity)
Cyclical Unemployment
Employed includes:
- paid employees
- with own businesses
- unpaid in family’s business
- temporarily absent employees
Unemployed includes:
- available for work
- tried to find employment (during the previous 4 weeks)
Not in the labor force includes:
- students, homemakers, and retirees
Labor force computation:
Employed + Unemployed = Labor Force
Labor-force participation rate
Labor Force divided by Adult Population (% of Adult Population in the US that are part of the Labor Force)
Around which the unemployment rate fluctuates is called
Natural Rate of Unemployment
Deviation of unemployment from its natural rate
Cyclical Unemployment
Tried to find a job but had given up after an unsuccessful search
discouraged workers
Unemployment that results from the process of matching workers and jobs
frictional unemployment (explains short-term unemployment)
Unemployment that results from the insufficient number of jobs available in the labor market
structural unemployment (explains long-term unemployment)
Process of matching workers with appropriate jobs
Job Search
The process in which unions and firms agree on the terms of employment is called
collective bargaining
Unemployed (as per NSCB Resolution No. 15)
those in the labor force:
- without work
- available for work
- seeking work or not seeking work
employed persons who express the desire to have additional hours of work in their present job or an additional job, or have a new job with longer working hours
Underemployed
nationwide quarterly survey conducted by the Philippine Statistics Authority
Labor Force Survey
population of 15 yrs old and over who contribute in production (and formula)
Labor Force = employed + unemployed
comprises those in the labor force and those who are not in the labor force
Population = labor force + not in the labor force
Employment rate (formula)
(employed / labor force) x 100
Underemployment Rate (formula)
(underemployed/employed) x 100
Unemployment Rate (formula)
(unemployed/labor force) x 100
Labor Force Participation Rate (formula)
(labor force/population) x 100
when people become unemployed voluntarily
Voluntary Unemployment
when qualified people who are willing to work cannot find jobs
Involuntary Unemployment
number of people who do not have work but who are not counted in government reports. (or those with redundant work)
Hidden Unemployment
