Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 18-1 Chapter 18 The labour force.

Slides:



Advertisements
Similar presentations
Under 15 and/or Institutionalized (5.3 million) Not in labor force (9.3 million) Employed (17.3 million) Unemployed (1.4 million) Total population (4.3.
Advertisements

A.S 2.4 Internal Unemployment 4 Credits. Employment By the end of this unit you will be able to: Identify statistical sources of employment and unemployment.
Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 21-1 PART 9 ECONOMIC POLICIES Chapter.
ECO120 Macroeconomics Rod Duncan Lecture 6- The business cycle, or why we do well in some years and worse in others.
Introduction to Macroeconomics Chapter 6 Unemployment and the Labor Market © Tancred Lidderdale
Unemployment and Inflation
Chapter 6 Unemployment. Unemployment in the U.S. follows a counter- cyclical pattern, rising when the economy's GDP is declining, and falling when the.
Understanding Economics Chapter 10 Inflation and Unemployment Copyright © 2005 by McGraw-Hill Ryerson Limited. All rights reserved. 3 rd edition by Mark.
Chapter 10: Unemployment Issues. Cost of Unemployment Economic Cost: –Loss of income for the individual –Cost of searching for new jobs –Loss of goods.
Jobs and Unemployment CHAPTER 7. LABOR MARKET INDICATORS So far we have studied measures of macroeconomic performance. 1)The value of output measured.
Economic Challenges: Unemployment.. Essential Standards The student will explain how unemployment is calculated. The student will identify structural,
Unemployment. Definition A person is considered unemployed if: ◦They are without work ◦They are able to begin work ◦They are actively seeking employment.
Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 15-1 PART 7 THE CIRCULAR FLOW AND.
Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Macroeconomics 7/e by Jackson and McIver Slides prepared by Muni Perumal, University of Canberra,
Unemployment The two major views on unemployment are: The "Keynesian" view of Unemployment: Unemployment is an excess supply of labor resulting from a.
1 Understanding Economics Chapter 10 Inflation and Unemployment Copyright © 2005 by McGraw-Hill Ryerson Limited. All rights reserved. 3 rd edition by Mark.
Production, Income, and Employment Chapter 6 Part 2 (Employment) CHAPTER 1.
 Definition of Goal: The goal of Full Employment: that there should be no cyclical unemployment caused by weak demand or recession.  TARGET – To achieve.
Learning Objectives Know how unemployment is measured.
THE UK ECONOMY (MACROECONOMICS) TOPIC 2 UNEMPLOYMENT.
Business Cycles, Unemployment, and Inflation
Unit 6 Macroeconomics: GDP and Economic Challenges Chapters 13.1 Economics Mr. Biggs.
Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 22-1 Chapter 22 Fiscal policy Budget.
© 2013 Pearson. How long does it take to find a job?
© 2011 Pearson Education Jobs and Unemployment 6 When you have completed your study of this chapter, you will be able to 1Define the unemployment rate.
1 Business Cycles and Unemployment Economics for Today by Irvin Tucker, 6 th edition ©2009 South-Western College Publishing.
Unemployment and its Natural Rate
1 Chapter 16 Business Cycles and Unemployment Key Concepts Key Concepts Summary Practice Quiz Internet Exercises Internet Exercises ©2000 South-Western.
CHAPTER 7 Measuring Employment and Unemployment
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.
Labour markets/ Workforce planning Unemployment – understanding the terms.
Unemployment AS economics presentation on the measurement and causes of unemployment.
LABOR MARKET INDICATORS  Current Population Survey Every month, 1,600 interviewers working on a joint project of the Bureau of Labor Statistics (BLS)
 Circular Flow of Income is a simplified model of the economy that shows the flow of money through the economy.
Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 24-1 Chapter 24 Prices and incomes.
Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 16-1 Chapter 16 National income, expenditure.
 The labor force includes all persons over age sixteen who are either working for pay or actively seeking paid employment.  People who are not employed.
Unemployment Definition – someone over 15 years of age not working but actively seeking work. One hour of paid work per week is considered as employment.
 Recall: Another economic goal of Canada is full employment Labour Force Survey  Every month, Stats Canada keeps takes a monthly survey of households.
Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 23-1 Chapter 23 Monetary policy ‘EASY.
1 Chapter 16 Business Cycles and Unemployment Key Concepts Key Concepts Summary Practice Quiz Internet Exercises Internet Exercises ©2002 South-Western.
Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser Chapter 25 External policy External.
Business Cycles and Unemployment. Business Cycle Alternating periods of economic growth and contraction, which can be measured by changes in real GDP.
7–17–1 Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint® Slides t/a Principles of Macroeconomics by Bernanke, Olekalns and Frank Chapter 7 Spending.
CHAPTER 13 Economic Challenges
 Paid work: involves the labour market  The labour market is an institution where buyers (govt, businesses and firms) and sellers of labour (workers)
Principles of MacroEconomics: Econ101 1 of 29.  In this chapter we take a look at the problem of unemployment  When is a person “unemployed”?  What.
© 2011 Pearson Education Jobs and Unemployment 21 When you have completed your study of this chapter, you will be able to 1Define the unemployment rate.
Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser PART 6: AUSTRALIA IN THE INTERNATIONAL.
6-1 Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Macroeconomics 2e by Bernanke Olekalns and Frank Slides prepared by Anne Gleeson, Flinders.
Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Macroeconomics by Jackson and McIver Slides prepared by Muni Perumal 5-1 Chapter 5 The macroeconomic.
Chapter 13: Economic Challenges Section 1. Copyright © Pearson Education, Inc. Slide 2 Chapter 13, Section 1 Objectives 1.Differentiate between frictional,
The Business Cycle. The business cycle is the alternating periods of economic growth and contraction experienced by the economy. The business cycle is.
Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 1-1 PART 1 ECONOMIC CONCEPTS AND SYSTEMS.
Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 19-1 Chapter 19 Inflation Source:
Principles of Macroeconomics Lecture 5 UNEMPLOYMENT.
Copyright © 2012 by McGraw-Hill Ryerson Limited. All rights reserved. Understanding Economics 6 th edition by Mark Lovewell.
1 © ©1999 South-Western College Publishing PowerPoint Slides prepared by Ken Long Principles of Economics 2nd edition by Fred M Gottheil.
© 2011 Pearson Education Jobs and Unemployment 6 When you have completed your study of this chapter, you will be able to 1Define the unemployment rate.
Unemployment What is unemployment rate?. Unemployment Measuring Unemployment Measuring Unemployment Identifying the Employed and Unemployed Employed Employed.
Economic Challenges Unemployment. Policy makers and economic analysts gauge the health of the U.S. economy by examining the labor force and unemployment:
Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 17-1 Chapter 17 Structural change.
Unemployment Krugman Section 1 Module 3. Full Employment Unemployment Rate Full employment does not mean zero unemployment = to the total frictional and.
McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved Unemployment Chapter 6.
1 Chapter 12 Business Cycles and Unemployment Key Concepts Key Concepts Summary ©2000 South-Western College Publishing.
A.S 2.4 Internal Unemployment 4 Credits. Employment By the end of this unit you will be able to: Identify statistical sources of employment and unemployment.
Chapter 12 Business Cycles and Unemployment
Economic Growth Our goals for this chapter include:
Unemployment AP Macroeconomics.
1.
Presentation transcript:

Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 18-1 Chapter 18 The labour force

Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 18-2 Defining unemployment Types of unemployment – Cyclical and non-cyclical unemployment Measuring unemployment – Direct and indirect measures Reasons and costs of unemployment International comparisons Lecture Plan

Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 18-3 A situation where some people are willing and able to work, but are unable to find paid employment Sources of information: the Australian Bureau of Statistics (ABS) and Centrelink ABS regular household surveys ( residences) – ABS criteria: ‘those aged 15 and over’ who were not employed during the survey week – Government requirements for those receiving unemployment benefits Defining Unemployment

Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 18-4 Cyclical (demand-deficient) unemployment Non-cyclical unemployment e.g. frictional, structural, seasonal Underemployment: people with part-time jobs would prefer to work full-time/more hours Hidden unemployment: those prevented from seeking employment because of personal or family circumstances Hard-core (long-term) unemployment Types of Unemployment

Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 18-5 Unemployment caused by the business cycle (deficient demand), that is, by a deficiency of aggregate spending Business activity Unemployment Cyclical unemployment at the depth of the depression (1931–32) reached 30% of the workforce Cyclical (Demand-deficient) Unemployment

Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 18-6 Frictional unemployment: those unemployed temporarily as individuals leave one job in search of another Structural unemployment: a mismatch in the demand for and supply of labour due to changing technology and the changing composition of production – Example: demand for computer programmers, supply of car assembly workers Seasonal unemployment: fruit-pickers, ski instructors Non-cyclical Unemployment

Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 18-7 Measuring Unemployment Direct measuresIndirect measures The labour force participation rate (LFPR)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 18-8 Full Employment Full employment (natural rate of unemployment) = Rate of frictional unemployment + rate of structural unemployment Achieved when cyclical unemployment is zero Full employment is currently estimated by some economists at about 4–5% unemployment (used to be about 2% in the ‘golden era’ of 1950 to 1972)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser 18-9 Australia’s Employment: Full- Versus Part-time (%), Total (‘000), 1991 to 2003 Source: Compiled from Australia Bureau of Statistics, Labour Force Australia, cat. no data.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser Average Unemployment Rate, OECD and Australia, 1991 to 2002, % p.a.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser Structural Unemployment Rate in Australia (%), Average 1982–1984, 1992–1994, 2002, 2003 Source: Adapted from OECD, Economic Outlook, July 2004.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser Unemployment Rates (% p.a.) for Various Countries, 1991 to 2003

Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser Causes of Unemployment Deficient demand for goods and services Increased labour costs Technological change Increased savings (less consumption) Lack of private investment Anti-inflationary economic policies – Surplus budget reducing aggregate demand – High interest rates reducing the incentive to consume and invest

Copyright  2005 McGraw-Hill Australia Pty Ltd PPT Slides t/a Economics for Business 3e by Fraser, Gionea and Fraser GDP gap (forgone output) Unequal burden – December 2003: Youth unemployment rates were higher than in the late 1980s, with 24.2% of females and 17.6% of males not in education, looking for work – Over 50s rates are extremely high Non-economic costs – Sociopolitical unrest – Plummeting of morale, family disintegration – Suicide Costs of Unemployment