Unemployment Flashcards
What is unemployment?
When the labour force is seeking employment but cannot find it
Who is included in the number of unemployed persons?
Anyone over 15 who is without a job but looking for work
What is the labour force?
The total number of people who are working or unemployed
Who is not included in the labour force? (4)
- full time college students
- discouraged workers
- homemakers
- retired people
What are discouraged workers?
People who are able to work but are not looking for work
What is the labour force participation rate?
The percentage of the population that is in the labour force
What is the formula for the labour force participation rate?
Participation rate = labour force / population 15 years over x 100
What is the unemployment rate?
The percentage of the labour force that is unemployed
What is the formula for the unemployment rate?
Unemployment rate = unemployed / labour force x 100
What are the four types of unemployment?
- frictional
- structural
- seasonal
- cyclical
What is frictional unemployment? + example
Unemployment due to the natural frictions of the economy
- e.g short term contract workers
What is structural unemployment? + example
Unemployment due to structural change in the economy that eliminate some jobs and create others
- e.g rise of Internet banking = less tellers employed
What is seasonal unemployment? + example
Unemployment due to seasonal trends
- e.g Christmas jobs
What is cyclical unemployment? + example
Unemployment due to contractions in the economy
- e.g during a recession, there is high unemployment
What is low unemployment also known as?
The natural rate of unemployment
