Unemployment.

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Presentation transcript:

Unemployment

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

Calculate Unemployment

Tracking Unemployment The Bureau of Labor Statistics tracks unemployment data (as well as price levels) Current Population Survey Uses 60,000 Households Specifics not discussed in class for interested students may be found here: http://www.bls.gov/cps/cps_htgm.htm

The Census Bureau’s Household Survey How BLS Measures Employment Status Worked one or more hours for pay? Yes Employed No Yes Temporary layoff? Unemployed No Searched for work? Yes Unemployed No Not in Labor Force

The Census Bureau’s Household Survey Employment Status of the U.S. Population—2016 Employed 152.0 Million Not in Labor Force Under 16 Military or Institutionalized Unemployed 7.5 Million 95.1 Million 70.4 Million Civilian Noninstitutional Population Labor Force U.S. Population 2016 - 325 Million People

Types of Unemployment Frictional Structural Seasonal Cyclical Time “between” jobs Structural Wrong skill-set - or - more people seeking jobs than there are jobs available Seasonal Based on the season Cyclical Recession

Sources of Structural Unemployment & Wage Rigidity Minimum Wages Government price control Labor Unions Pushes for higher wages and restricts job openings Efficiency Wages Higher pay for more productivity Public Policy Unemployment Insurance – subsidizing unemployment

Types of Unemployment Natural Rate of Unemployment (A.K.A. – Full Employment) includes only Frictional + Structural (no Cyclical) around 4.5% to 5.0%

Biases In Unemployment Marginally Attached Workers currently want a job, have looked for work in the last 12 months and are available for work. Discouraged Workers Discouraged workers are a subset of the marginally attached. Discouraged workers report they are not currently looking for work Underemployment Work part-time but would like full time The BLS attempts to track and correct these issues. Data series may be found at: http://www.bls.gov/cps/lfcharacteristics.htm#altmeasures