Unemployment Flashcards
What does unemployment represent?
Unused resources/goods and services not being produced
What does BLS stand for?
Bureau of Labor Statistics
Define “Employed”
Someone who currently has a job
Define “Out of the labor force”
Someone who doesn’t have a job & isn’t activley looking
Define a “Discouraged Worker”
Someone who has given up looking for work (branch of “out of the labor force”)
Define “Unemployed”
Someone who doesn’t have a job & is actively looking
Define “Underemployed”
Workers working part-time, but want to work full-time; overqualified
What is the unemployment rate?
The percentage of the nation’s labor force that is unemployed
How is the unemployment rate calculated?
of ppl. unemployed / # of ppl. in labor force x 100
If the employment rate changes, what does that mean for the economy?
It is going through cycles
How many categories of unemployment are there and what are they?
3: Frictional, Cyclical, Structural
Define frictional unemployment
When people take time to find a job; short term unemployment associated with matching workers with jobs (transitioning workers)
Define cyclical unemployment
When unemployment rises during economic downturns, falls when economy improves; extra unemployment that occurs during a recession
Define structural unemployment
Geographic or skill mismatch between workers and employers (learn new skills or move locations)
When someone has recently graduated college and has begun looking for a new job, what type of unemployment are they facing?
Frictional
