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
True or False? When someone works part-time but is also looking for jobs that match their skill level, they are employed
True
When someone has been laid off during a recession, what type of unemployment are they facing?
Cyclical
When someone has been fired from a job and has given up looking for a job, what are they?
Disocuraged worker, out of the labor force
When someone loses their job and doesn’t meet the skill requirment in their field, what type of unemployment is being faced?
Structural
