Economic Challenges: Unemployment.

The Unemployment Rate The unemployment rate is measured each month. The US unemployment rate as of May, 2008 was 5.5%, as of September, 6.1%, as of October, 6.4%, as of December, 7.2%, as of March, 2009, 8.5%., as of June, 2009, 9.1%., as of July, 2009, 9.7%. This measurement is a key measure of economic health.

Measuring Employment Bureau of Labor Statistics—conducts a survey of 50,000 each month… This represents the US population… Based on these interviews, the BLS computes the… Unemployment rate—the percentage of the work force that is unemployed.

If your parents own a restaurant and you work there for 20 hours per week, but do not get paid for it, you are considered: iRespond Question F Multiple Choice A.) Employed B.) Unemployed C.) Not very smart because you are working for free D.) E.)

You Are Employed… If you meet any of the three criteria: If you have worked for pay for one or more hours this week. If you have worked without pay in a family business 15+ hours. If you have a job, but have been ABSENT due to illness, weather, vacation, etc.

You Are Unemployed… 1. If you don’t meet any of the preceding criteria… 2. And if you’ve been actively looking for work during the past 4 weeks.

Types of Unemployment: Frictional Includes people who have decided to LEAVE one job and LOOK for another. Also, new entrants and re-entrants into the LABOR FORCE. Economists consider frictional unemployment as a NORMAL part of a healthy economy.

Mrs. Roma decided to sell her tanning salon business and become a teacher instead. That is an example of: iRespond Question F Multiple Choice A.) Seasonal Employment B.) Cyclical Employment C.) Frictional Employment D.) Structural Employment E.)

Structural Unemployment Structural unemployment occurs as a result of changes in TECHNOLOGY or CONSUMER PREFERENCES. EX: Many typewriter repairman had to find new work as typewriters were replaced by computers. Structural unemployment is also considered a healthy part of the economy.

You got hired to work as a cashier at Target in November, but got laid off in January. This type of unemployment is best described as: iRespond Question F Multiple Choice A.) Frictional B.) Seasonal C.) Cyclical D.) Structural E.)

Seasonal Unemployment This predictable unemployment fluctuates as a result of HOLIDAYS, school breaks, and industry PRODUCTION schedules.

Cyclical Unemployment Unemployment that results from economic DOWNTURNS. Cyclical is the most harmful to the economy. During the Great Depression, the unemployment rate reached an all time high of about 25%. As recently as 1991 and 1992, the unemployment rate reached 7.5%.

Levels of Employment Full employment—no cyclical unemployment exists (but other categories do). Underemployment—working at a job for which you are overqualified... Or working part-time when full time is desired. Discouraged workers—have given up looking…and do not appear in the unemployment rate.

When you graduate from college, jobs are hard to find, so you take a job working 40 hours a week making sandwiches at Chick-fil-A. This scenario BEST describes: iRespond Question F Multiple Choice A.) Full Employment B.) Underemployment C.) A Discouraged worker D.) E.)