Unemployment What I need to know: What is unemployment? When unemployment RISES ---> the economy becomes less stable (vice versa) How to calculate unemployment Spending is key!!!

Why Unemployment Matters

Why Unemployment Matters

Unemployment Unemployed: Unemployment Rate Doesn’t have a job, but wants a job Unemployment Rate # Unemployed ÷ # Labor Force Percentage of people not working Tool for measuring our economy

= 4,000,000 people 300,000,000 people in the USA

240 million = old enough to work

150 million = looking for work

12 million = looking, but can’t find work

12 million = looking, but can’t find work Unemployment Rate # Unemployed ÷ # Labor Force 12,000,000 ÷ 150,000,000 .08 or 8% unemployment rate 12 million = looking, but can’t find work

Economic Measurements Gross Domestic Product (GDP) Unemployment Rate Tools for measure the HEALTH of an economy Is the economy stable? Is your money safe?

Types of Unemployment Structural Frictional Cyclical Changes in Technology Changes in Tastes Frictional Graduation After raising kids Changing careers Quitting/fired Moving Cyclical recessions

Make inferences

Make inferences

Using Economic Tools Someday you will need to find a job Objective: You may need to move Where? A state with opportunity, growth, and that is stable Use GDP and Unemployment numbers Objective: List the Top 5 states for GDP, GDP per capita, and lowest unemployment rate for 2012 List the Top 5 states for GDP, GDP per capita, and lowest unemployment rate for 2003 Based on the data, infer which state is the most likely to be on this list in 2022. Defend your answer. List the bottom 5 states for GDP, GDP per capita, and Highest unemployment rate for 2003