1. Unemployment Challenges
Doesn’t indicate differences in intensity w/ which people look for jobs
Discouraged workers – people who want a job but have stopped looking for work
Underemployed – people only able to find part-time work or work below skills. (Ex: A waiter w/ a college degree.)

2. Bell Ringer #10 – 1/20/11
List the 4 types of unemployment & provide an example why a person would fit into each one.
Provide an example for an “underemployed” individual.
Houston, Jarrell  Hubbard, Milette J Johnson, Marquita M Landis, Adonnia C Lawrence, Frederick D Lawson, Brandon  Lee, Kelvon  Long, Christopher C Mcculloh, Alonzo N Mcelrath, Rashawn D Mcelroy, Auriel  Menzie, Jessica  Perry, Jason C Randle, Alexie L Razor, Naisha Q Rodgers, Jazmine  Tompkins, Diane  Tucker, Brent A

3. Poverty
The poverty threshold is the lowest income, as determined by the gov’t – that a family or household of a certain size or composition needs to maintain a basic standard of living.
Poverty rate is % of total population living in poverty.

4. U.S. Census Bureau Poverty Thresholds, 2009
Size of Family Unit
Poverty
Threshold
One person
$10,956
Two people
$13,991
  Householder under 65
$14,439
  Householder 65 and over
$12,982
Three people
$17,098
Four people
$21,954
Five people
$25,991

5. Poverty & the Gini Index
Gini Index – This is used as a statistical measure of income inequality between wealth and poverty.
The Gini coefficient ranges 0-1. A low Gini indicates a more equal distribution, with 0 indicating equality. (Never exists)

6. The U.S. Gini Index
In the U.S. the Gini continues to rise – meaning rich are getting richer and poor are getting poorer (or staying poor).
The Gini Coefficient for the U.S. has risen since If the trend continues, we will reach a Gini of 0.55 by This coefficient is equal to Mexico’s in 2000.

7. U.S. Gini Index, Continued..
Mexico is not known for having a large middle class.
Unless the U.S. breaks the trend of a “rising Gini”, the American middle class will be a thing of the past - actually within the lifetime of most Americans living today.

8. Gini Indexes for a select group of nations
Japan - .25,
Iran - .43
Germany - .28
USA - .47
Mexico - .55
Canada - .33
South Africa - .58
Namibia - .71
Notice that the Gini for the U.S. is closer Mexico's than it is to Canada's.

10. Lorenz Curve
Graph showing how equally income is distributed in an economy.
Plots the proportion of the total income for percentages of the population.