1. Unemployment & Poverty

2. Vocabulary Unemployed- willing, available, and searching for work but unable to obtain a job. Underemployed- very few hours- not full time Labor force- age 16+ who are employed or actively seeking employment

3. Unemployment Rate Number of Unemployed Persons ÷ Labor Force April 2014 = 6.3% (Bureau of Labor Statistics) Oregon = 6.9%

4. Sources of Unemployment Frictional- between jobs Structural- Reduced demand for workers in a certain industry Technological- machines replace humans Cyclical- Recessions, depressions Seasonal- Dependent on the calendar (usually agriculture or holiday retail)

5. Effects of unemployment Uncertainty- people have less demand for a product if they aren’t sure they’ll keep a job. Political Instability- Voters are dissatisfied Crime, Family Instability, and… Poverty

7. Poverty threshold- income level to be considered “poverty” Poverty guidelines- determine eligibility for government programs. May be referred to as “income inequality” or “rich get richer, poor get poorer.” Blue-collar- lower-skilled service jobs (manuf., construction, etc.) White-collar- professional services (teacher, lawyer, accountant, etc.)

8. 2013 Poverty Threshold Household Size 100% 133% 150% 200% 300% 400% 1$11,490$15,282$17,235$22,980$34,470$45,960 215,510 20,62823,265 31,02046,53062,040 319,530 25,97529,295 39,06058,59078,120 423,550 31,32235,325 47,10070,65094,200 527,570 36,66841,355 55,14082,710110,280 631,590 42,01547,385 63,18094,770126,360 735,610 47,36153,415 71,220106,830142,440 839,630 52,70859,445 79,260118,890158,520 For each additional person, add $4,020 $5,347$6,030 $8,040$12,060$16,080

9. Reasons for Income Inequality Education- more education = higher income Wealth- top 20% holds about 75% of the income Tax laws Decline of Unions- unions usually have higher wages More Service jobs- lower wages (movie theatres, retail, etc) Monopolies- A group can limit the number of new hires Discrimination Family structure- one-parent households usually earn less

10. YouTube video: Wealth Inequality in America: Perception vs. Reality