 Employed-Individuals who are age 16 and older, who work for pay or profit, one or more hours, work without pay for a family business for 15 or more hours, or have jobs, but didn’t work as a result of illness, weather, vacations, or labor disputes.  Unemployed- If none of the above conditions apply, one is considered unemployed.

a. The percentage of persons who have no employment. 1. Does not measure all aspects of unemployment. -such as intensity of search. -conditions for job denial

 Marginally Attached workers-people who once held productive jobs, but have given up looking for work.  Discouraged workers- people who want a job but have stopped looking for a job for a job related reason.  Underemployed workers- people who are working jobs that do not meet their qualifications or skills as a worker.

a. Frictional Unemployment-when workers are moving from one job to another. 1. It reflects the workers freedom of choice in the labor markets they select the jobs that are most satisfying to them. 2. It also signals new jobs in new industries are becoming more available.

b. Structural Unemployment-occurs as a result of changes in technology or in the way the economy is structured.

c. Seasonal unemployment-results from seasonal variations in the economy. 1. Agricultural workers are affected.

d. Cyclical Unemployment-results from recessions and economic downturns. -This is harmful to the economy. - Sales decline, producers reduce output, and lay off workers. This reduces total demand, leading to more lay-offs and higher unemployment.