Opening Questions (Discuss in Small Groups) 1.How would you characterize the relationship between GDP and Unemployment? 2.Which demographic groups, if.

Slides:

Advertisements

Similar presentations

Section 3B- Modules 12/13 Unemployment

Advertisements

Other Measures of Total Production and Total Income The Division of Income FIGURE 7-5 The Division of Income.

1 Chapter 16 Business Cycles and Unemployment Key Concepts Key Concepts Summary Practice Quiz Internet Exercises Internet Exercises ©2002 South-Western.

Unit 2 : Macroeconomics National Council on Economic Education Macroeconomic Questions Why does output fluctuate? What determines.

AP Economics Mr. Bernstein Module 12: The Meaning and Calculation of Unemployment February 6, 2015.

Introduction to Macroeconomics Chapter 6 Unemployment and the Labor Market © Tancred Lidderdale

1 Chapter 12 Practice Quiz Tutorial Business Cycles and Unemployment ©2004 South-Western.

Chapter 8: Unemployment and Inflation © 2008 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien, 2e. 1 of 36 Labor force.

Chapter 7 Labor Market Indicators Current Population Survey: Every month, the U.S. Census Bureau and Bureau of Labor Statistics (BLS) survey 60,000 households.

C h a p t e r eight © 2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1 st ed. Prepared by: Fernando & Yvonn.

Unemployment Chapter 6. Measuring Unemployment  An economy with unemployment is wasting resources and producing at a point inside the production possibilities.

Labor force The sum of employed and unemployed workers in the economy. Employed can be in any job -- part-time, underemployed Unemployment rate The percentage.

© 2008 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien, 2e. Fernando & Yvonn Quijano Prepared by: Chapter 8 Unemployment.

Introduction to Macroeconomics The Business Cycle and Measures of Performance.

Chapter 11 ©2010  Worth Publishers Unemployment and Inflation.

Copyright © 2001 by Houghton Mifflin Company. All rights reserved. 1 Economics THIRD EDITION By John B. Taylor Stanford University.

Module The Production Possibilities Curve Model

Other Measures of Total Production and Total Income The Division of Income, 2010 FIGURE 7-5 The Division of Income 21% 55 % 2% $7, ,455 2,993.

ECO Global Macroeconomics TAGGERT J. BROOKS.

1 Business Cycles and Unemployment Economics for Today by Irvin Tucker, 6 th edition ©2009 South-Western College Publishing.

1 of 35 chapter: 8 >> Krugman/Wells ©2009  Worth Publishers Unemployment and Inflation.

LABOR FORCE Ch. 12 Notes. Labor Force Make-Up  Made up of:  people 16 or older  Civilian  Uninstitutionalized  who want a job or have one  Can be.

Aim: To what extent can unemployment be resolved by addressing expansions and contractions in GDP? Do Now: What is the nature of the relationship between.

Module The Meaning and Calculation of Unemployment

AP Economics Mr. Bernstein Module 13: The Causes and Categories of Unemployment February 6, 2015.

Module 12 Mar  Defining and Measuring Unemployment ◦ Employed – you have a job ◦ People not considered – retired, disabled, institutionalized,

AP Macroeconomics Unemployment. Start with the Population of the Country (310 million) Let’s figure out which groups of people are NOT in the labor force!

Who is employed? Civilian Labor Force: +16, working, or looking. An employed person is any person 16 years old or older 1.who works for pay, either for.

Unemployment Calculations McConnell & Brue. Labor Force & Unemployment Labor force: persons 16 and older who are not in institutions who are either employed.

Unemployment E conomics P R I N C I P L E S O F N. Gregory Mankiw Chapter 28.

0 CHAPTER 6 Unemployment U P D A T E Chapter 6 Unemployment.

 Recall: Another economic goal of Canada is full employment Labour Force Survey  Every month, Stats Canada keeps takes a monthly survey of households.

Module The Meaning and Calculation of Unemployment KRUGMAN'S MACROECONOMICS for AP* 12 Margaret Ray and David Anderson.

1 of 35 chapter: 8 >> Krugman/Wells ©2009  Worth Publishers Causes of Unemployment.

When you have completed your study of this chapter, you will be able to C H A P T E R C H E C K L I S T Define the unemployment rate and other labor market.

1 Chapter 16 Business Cycles and Unemployment Key Concepts Key Concepts Summary Practice Quiz Internet Exercises Internet Exercises ©2002 South-Western.

1 of 35 chapter: 8 >> Krugman/Wells ©2009  Worth Publishers Meaning and Calculation of Unemployment.

Employment Statistics Employed You have a job (even if part time) Unemployed “Jobless, looking for jobs, and available to work” Must be ACTIVELY searching.

Meaning & Calculation of Unemployment. Objectives: How is unemployment measured and calculated? What is the relationship between the unemployment rate.

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

Business Cycles and Unemployment. Business Cycle Alternating periods of economic growth and contraction, which can be measured by changes in real GDP.

Introduction to Macroeconomics The Business Cycle and Measures of Performance.

DataPost Unemployment Rate Measuring the Workforce Federal Reserve Bank of San Francisco Economic Education & Outreach Date last updated: September 8,

1 Chapter 13 Employment © 2003 South-Western College Publishing.

When you have completed your study of this chapter, you will be able to C H A P T E R C H E C K L I S T Define the unemployment rate and other labor market.

Principles of Macroeconomics Lecture 5 UNEMPLOYMENT.

Unemployment What is unemployment rate?. Unemployment Measuring Unemployment Measuring Unemployment Identifying the Employed and Unemployed Employed Employed.

Module The Meaning and Calculation of Unemployment KRUGMAN'S MACROECONOMICS for AP* 13 Margaret Ray and David Anderson.

Economic Challenges Unemployment. Policy makers and economic analysts gauge the health of the U.S. economy by examining the labor force and unemployment:

Who is employed? Civilian Labor Force: +16, working, or looking. An employed person is any person 16 years old or older 1.who works for pay, either for.

Module Introduction to Macroeconomics KRUGMAN'S MACROECONOMICS for AP* 2 Margaret Ray and David Anderson.

Unemployment Krugman Section 1 Module 3. Full Employment Unemployment Rate Full employment does not mean zero unemployment = to the total frictional and.

Module The Meaning and Calculation of Unemployment

 Employed-Individuals who are age 16 and older, who work for pay or profit, one or more hours, work without pay for a family business for 15 or more.

1 Chapter 12 Business Cycles and Unemployment Key Concepts Key Concepts Summary ©2000 South-Western College Publishing.

ECONOMICS Paul Krugman | Robin Wells with Margaret Ray and David Anderson SECOND EDITION in MODULES.

Business Cycles and Unemployment

Section 3 Module 13.

Business Cycles and Unemployment

Unemployment vs Employment

Section 3 Module 12.

Module The Meaning and Calculation of Unemployment

Module The Meaning and Calculation of Unemployment

Module The Meaning and Calculation of Unemployment

Business Cycles and Unemployment

Types of Unemployment.

Types of Unemployment.

Module The Meaning and Calculation of Unemployment

Unemployment and Okun’s Law

Presentation transcript:

Opening Questions (Discuss in Small Groups) 1.How would you characterize the relationship between GDP and Unemployment? 2.Which demographic groups, if any, might have higher than average unemployment rates? 3.How well do you think the unemployment rate captures the true picture of joblessness in the economy?

Employment Consequences and Calculations Modules 12 and 13

Figure 12.1 The U.S. Unemployment Rate, 1948–2010 Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Figure 12.5 Growth and Changes in Unemployment, 1949–2009 Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Labor Force Participation Percentage of civilian population 16 years or older who are part of the labor force

Figure 12.2 Alternative Measures of Unemployment, 1994–2010 Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Workers Not Counted Underemployed – Working part time, but want full time – “Part-time for Economic Reasons” Not in labor force – Marginally-attached workers Would like a job, but have not looked in past 4 weeks Discouraged workers – Believe there is no job for them

Figure 12.3 Unemployment Rates of Different Groups, 2007 Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Unnumbered Figure 12.1 Rocky Mountain Low Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Employment Labor Force = Employed + Unemployed Employed Work for pay OR 15 hours of unpaid work in family business OR Temporarily absent from work Unemployed Did no work for pay or profit Actively looked for work Available for work Not Counted in Labor Force Under 16 Institutionalized (military; prison) People who have stopped seeking work

Figure 13.1 Distribution of the Unemployed by Duration of Unemployment, 2000 and 2010 Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Components of Unemployment Frictional Seasonal Structural Cyclical

Components of Unemployment Frictional – In between jobs Seasonal – Unemployment due to time of year

Components of Unemployment Structural – More job seekers than jobs available at a given wage rate – Persistent unemployment due to skills mismatch – Declining industries – Wages Minimum wage Unions Efficiency wages

Figure 13.2 The Effect of a Minimum Wage on the Labor Market Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Natural Unemployment Rate “Ordinary” level of unemployment – Frictional + Structural For USA it is currently about 5.5%

What Affects Natural Rate? Labor force characteristics Labor markets effects that result in higher wages – Minimum wage – Unions Technology helps reduce frictional unemployment Job training and employment subsidies

Figure 13.3 The Changing Makeup of the U.S. Labor Force, 1948–2009 Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Cyclical Unemployment Unemployment that is the result of the business cycle (recessions) Cyclical Unemployment = Actual Unemployment – Natural Unemployment