Transcript Unemployment - Cobb Learning

Unemployment
Unemployment
• Unemployment is the percentage of the
Labor Force that cannot find a job
• Unemployment is expressed as a % of the labor
force that is unemployed. It is called the
Unemployment Rate
Labor Force
• Over 16 yrs. Old
• Not Institutionalized
Not in School
Not in Jail/Prison
Not in Military
• Working or Seeking work
The current labor force = 155,460,000
out of 330,000,000 total population
Current Unemployment Rate
Types of Unemployment
• Frictional
Workers are in between jobs. Most common during expansions
• Structural
Workers have been replaced by machines, or their job skills are no
longer needed
• Cyclical
Workers are laid off because of a general slump in business
• Seasonal
Workers are unemployed because their job is out of season
Full Employment
“Full Employment” does NOT
equal 0% unemployment. 0% will
never happen!!
Natural Rate of Unemployment =
5% unemployment
Natural Rate=Full Employment
Costs of Unemployment
GDP GAP
Potential GDP minus actual Real GDP
When labor is unemployed, we are INSIDE our
Production Possibility Curve as an economy. This
costs ALL people, not just the unemployed
Burden of Unemployment
• Age
Workers 16-25 are more likely to be unemployed
• Race
Minority workers are more likely to be unemployed
• Gender
Males are more often unemployed than females
• Occupation
Workers in manufacturing occupations are more often
unemployed
Summary data