Causes and Categories of Unemployment

Slides:

Advertisements

Similar presentations

Chapter 14: UNEMPLOYMENT

Advertisements

A model of the natural rate Notation: L = # of workers in labor force E = # of employed workers U = # of unemployed U/L = unemployment rate.

Unemployment, job creation and job destruction Chapter 3.

THE NATURAL UNEMPLOYMENT RATE Recall: 1) when the economy is at full employment, there is still some amount of unemployment. (recall the definition of.

15 Unemployment and Its Natural Rate. IDENTIFYING UNEMPLOYMENT Categories of Unemployment The problem of unemployment is usually divided into two categories.

© 2009 South-Western, a part of Cengage Learning, all rights reserved C H A P T E R Unemployment E conomics E S S E N T I A L S O F N. Gregory Mankiw Premium.

Labor force The sum of employed and unemployed workers in the economy. Employed can be in any job -- part-time, underemployed Unemployment rate The percentage.

Chapter 15 – Long term Unemployment  How is unemployment measured?  What is the “natural rate of unemployment”?  Why are there always some people unemployed?

THE CAUSES & CATEGORIES OF UNEMPLOYMENT. OBJECTIVES: What are the three different types of unemployment? What factors determine the natural rate of unemployment?

Chapter 11 ©2010  Worth Publishers Unemployment and Inflation.

1. What are the three different types of unemployment and their causes? 2. What are the factors that determine the natural rate of unemployment?

© 2009 South-Western, a part of Cengage Learning, all rights reserved C H A P T E R.

Module 13 Mar  Job Search – when people spend time looking for employment  Frictional unemployment – unemployment due to the time workers spend.

MACROECONOMICS Chapter 6 Unemployment. 2 Steady State The labor market is in equilibrium. The labor market is in equilibrium. No unemployment = long-run.

Human Resources. What is the labour force? 1. The labour force is everyone 15 years of age and older who are working or is considered to be seeking employment.

Labor. What is the labour force? 1. The labour force is everyone 15 years of age and older who are working or is considered to be seeking employment.

Module The Meaning and Calculation of Unemployment

AP Economics Mr. Bernstein Module 13: The Causes and Categories of Unemployment February 6, 2015.

Quiz: Tuesday, May Income Inequality: “Income Distribution” Class Notes – Example: What factors affect wages & salaries?, 10 Causes of Income Inequality,

THE NATURAL RATE OF UNEMPLOYMENT Chapter 26. Measuring Unemployment Unemployment is measured by the Bureau of Labor Statistics (BLS).  It surveys 60,000.

Monitoring Jobs and the Price Level CHAPTER 6. After studying this chapter you will be able to Define the unemployment rate, the labor force participation.

Unemployment Chapter 28.

Unemployment E conomics P R I N C I P L E S O F N. Gregory Mankiw Chapter 28.

0 CHAPTER 6 Unemployment U P D A T E Chapter 6 Unemployment.

 Recall: Another economic goal of Canada is full employment Labour Force Survey  Every month, Stats Canada keeps takes a monthly survey of households.

1 of 35 chapter: 8 >> Krugman/Wells ©2009  Worth Publishers Causes of Unemployment.

Unemployment. Define Unemployment The number of people who are actively looking for work but are not currently employed.

Section 3. What You Will Learn in this Module Explain the three different types of unemployment and their causes Identify the factors that determine the.

Opening Questions (Discuss in Small Groups) 1.How would you characterize the relationship between GDP and Unemployment? 2.Which demographic groups, if.

Module The Meaning and Calculation of Unemployment KRUGMAN'S MACROECONOMICS for AP* 13 Margaret Ray and David Anderson.

Money, money, money Conflicting objectives?. AS Economics Homework due in…. 2 scenario unemployment Q’s Greg & Youth unemployment Extra HWK owing.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.

1 Sect. 3 - Measurement of Economic Performance Module 10 - The Circular Flow & GDP What you will learn: How economists use aggregate measures to track.

ECONOMICS Paul Krugman | Robin Wells with Margaret Ray and David Anderson SECOND EDITION in MODULES.

Unemployment and Its Natural Rate

Chapter 5: Monitoring Jobs and Inflation

©McGraw-Hill Companies, 2010

MODULE 14 (50) Categories of Unemployment

3.5.1 and unit content Students should be able to:

Unemployment and Inflation

Labor Markets and Unemployment Rates: — A Cross Country Analysis

Unemployement in Greece

Unemployment Learning outcome AD Define unemployment

Section 3 Module 13.

Unit Two Unemployment.

Please read the following License Agreement before proceeding.

Unemployment vs Employment

Module The Meaning and Calculation of Unemployment

Challenges to the Free Market System

THE PROBLEM OF UNEMPLOYMENT

Unemployment © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted.

ECO Global Macroeconomics

Module The Meaning and Calculation of Unemployment

The Meaning and Calculation of Unemployment

Unemployment AP Macroeconomics.

Facing Economic Challenges

The Meaning and Calculation of Unemployment

TYPES OF UNEMPLOYMENT 1) VOLUNTARY UNEMPLOYMENT

I can identify the different types of unemployment.

Unemployment defined One is unemployed if one is able to work at prevailing wage rates, and is either seeking employment or has been hired for employment,

The Meaning and Calculation of Unemployment

Unemployment 13.1 Why should our nation be concerned about unemployment? Gauges the economic health of a country by tracking the number of people who are.

Low unemployment Chapter 17.

Econ 101: Intermediate Macroeconomic Theory Larry Hu

Unemployment ETP Economics 102 Jack Wu.

Economic Challenges.

The Meaning and Calculation of Unemployment

Presentation transcript:

Causes and Categories of Unemployment Module 13 Causes and Categories of Unemployment

How might employment insurance affect unemployment?

Natural rate unemployment

Tswassen mills, target in canada

Frictional Unemployment

Frictional Unemployment Unemployment due to the time workers spend in job search. Examples: College student grads, starts work a month later, quit job at one company for a better one at another Desirable – in order to get a better job you have to leave your previous one

Structural

Structural Unemployment Unemployment that results when workers lack the skills required for the available jobs, or there are more people seeking jobs in a labour market than are available at a current wage. Examples: bottle making machines replaced glass blowers, foreign outsourcing has led to many workers losing their jobs, loggers and sawmill workers lose jobs when gov’t restrictions on lumber are put in place

Minimum Wage

Use timber example.

Labour Unions

Efficiency Wages

Gov’t policies 22.7% - compared to Germany at 4.7% (april 2015)

Structural?

Natural Rate of Unemployment NR = frictional + structural What else is there?

Cyclical Unemployment Cyclical unemployment is the deviation from the natural rate of unemployment

The natural rate can change over time Demographics (aging population) , labour market institutions (fewer unions), technology (online job searching), gov’t policies (gov’t training programs, employment subsidies)

Explain the following: Frictional unemployment always exists. Frictional unemployment accounts for a larger share of unemployment when the unemployment rate is low.

Question True or False: Collective bargaining has the same general effect on unemployment as minimum wage. Can you draw a diagram to illustrate the effect? True, price floor

Question Suppose Canada dramatically increases benefits for unemployed workers. Explain what will happen to the natural rate of unemployment.

What are the effects of this? Do FR #2 in textbook. Should we have basic income in British Columbia?