Economics 14-2 Unemployment pages

Unemployment ESSENTIAL QUESTIONS: Why does the government collect monthly data on unemployment? How are each of the five major kinds of unemployment different?

Unemployment GPS STANDARDS : SSEMA1- Describe the means by which economic activity is measured. d.) Explain structural, cyclical, frictional unemployment

l l Unemployment Nearly one-half of the population of the United States belongs to the civilian labor force, and at any given time millions of these people are without jobs. Currently, the US unemployment rate is 9.6 % October (November 2009 it was 10.2%) The unemployment rate shows the percentage of unemployed people divided by the total number of people in the civilian labor force.

l l Unemployment At the peak of the Great Depression, one out of every four people was unemployed. 25 % Between 1929 and 1933, real net national product, wholesale prices, and the money supply all declined by more than one-third.

l l Unemployment The unemployment rate understates unemployment because it does not include “discouraged” workers or people who are working part-time because they cannot find full- time work. What is a “discouraged” worker? Someone who has given up trying to find a job and is, therefore, not included in the unemployment rate.

FOLDABLE PROJECT Kinds of Unemployment: 1.Frictional unemployment 2.Structural unemployment 3.Cyclical unemployment 4.Seasonal unemployment 5.Technological unemployment Directions: 1.Explain or define each kind of unemployment 2.Give two examples of each 3.Decorate the front of your foldable with a picture that illustrates the type of unemployment

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