Unemployment Quiz Flashcards
What minority is most unemployed?
Black teens
Define unemployment
One has to be actively seeking a job
What is cyclical unemployment?
It’s based on the business cycle, it usually occurs in the recession phase of the cycle or when there are slowed sales
What is an example of cyclical unemployment?
People stop buying cars so a car dealer is laid off
What is frictional unemployment?
People who are between jobs, seasonally unemployed, students entering the workforce for the first time
What is structural unemployment?
When skills become obsolete or you can’t perform your skill anymore or technology replaces you
What is an example of structural unemployment?
Minimum wage is raised so you lose your job
What is underemployment?
Skills aren’t being fully used, part time seeking full-time, or skilled worker performing unskilled work
What is an example of underemployment?
A brain surgeon works at McDonalds
What makes up the natural unemployment rate?
Frictional and structural unemployment
What is the natural employment rate numbers wise?
4%
The US can be divided into what 3 categories?
People under 16 or that are institutionalized
People not seeking work(non-labor force)
People willing and able to work(labor force)
What is unemployment rate formula?
(Unemployed/labor force)•100
What groups is unemployment concentrated in?
Young people, racial/ethnic minorities, women, and those living in declining urban areas
