Unemployment Well, this isn’t fun 

Sure, you’re unemployed. But what kind of unemployed are you? There are four kinds of unemployment: Frictional Seasonal Structural Cyclical Each type of unemployment tells us something different about the economy.

Frictional Unemployment Will ALWAYS exist These are people who are taking time to find a job but have the necessary skills to get a job. Examples include: People taking time after graduation to find the “right” job People changing jobs People choosing to take time off to raise children/care for aging parents

Seasonal unemployment When industries slow or shut down during specific periods of the year. Examples include: Construction workers Landscapers Snow removal workers Migrant agricultural workers Seasonal unemployment is expected and not cause for alarm.

Structural unemployment Workers who lack necessary skills and therefore lose their jobs. Happens when the “structure” of the job market changes Examples: shift from farming to manufacturing Shift from manufacturing to service based industries

Structural unemployment Continued… Causes of Structural Unemployment 1. Development of new technology http://www.cbsnews.com/video/watch/?id=50138922n 2. Discovery of new resources 3. Changes in consumer demand 4. Globalization http://www.cbsnews.com/video/watch/?id=690741n 5. Lack of education Some companies will offer retraining programs to help lessen the effects of restructuring.

Cyclical unemployment Unemployment that rises during the bad times and lessens during the good. Follows the business cycle Although it is expected, it is very distressing The Great Depression brought on great levels of cyclical unemployment

Measuring unemployment The United States Bureau of Labor Statistics tracks unemployment on a monthly basis http://www.bls.gov/ http://www.bls.gov/web/laus/laumstch.htm http://data.bls.gov/map/MapToolServlet http://www.washingtonpost.com/wp- srv/special/nation/unemployment-by-county/ Unemployment Rate represents the percentage of the labor force that is unemployed.

the unemployment rate The labor force is all civilians age 16 or older who have a job or are actively looking for a job. Those going to school or not actively seeking a job DO NOT count Unemployment Rate: # of unemployed____ X 100 = Unemployment Rate # of people in labor force When the BLS reports the unemployment rate they adjust for seasonal unemployment

Full employment There will ALWAYS be some unemployment 4 to 6 percent is normal Full Employment is when no cyclical unemployment exists. Everyone who wants a job, has a job. This doesn’t mean they are satisfied with their job. Underemployed—working a job for which you are over-qualified, or working part-time when you would like to be full time. Those who would like jobs but have given up hope are known as discouraged workers.