1. Unemployment 13.1
Why should our nation be concerned about unemployment?
Gauges the economic health of a country by tracking the number of people who are out of work.
High rates can hurt the economy;
Nation loses goods and services
Businesses lose sales
Government support of unemployed
Societal consequences of unemployment?

2. Unemployment 13.1 Measuring Unemployment
Census Bureau conducts surveys and collects information on:
How many people unemployed?
How long been jobless?
How does it affect different regions of the country?
How does it affect different industries?
Bureau of Labor Statistics publishes results.

3. Identifying employed/unemployed 13.1
Classified as part of the labor force if:
Are 16 years of age
Are actively looking for work
Worked for pay one or more hours
Worked w/o pay in family business 15 hours or more.
Have a job but did not work because of illness, weather, vacations, labor disputes.

4. Calculating Unemployment
# of people unemployed
# of people in the labor force

5. 4 Categories of Unemployment
Frictional
Structural
Seasonal
Cyclical

6. Types of Unemployment 13.1 Four Categories of Unemployment:
Frictional—Workers moving from one job to another job. Voluntary or involuntary.
Examples – Take time off to search for a job
Laid off – because of issues within the
company
Fired
take time off after finishing school
take time off to care for young children

7. Types of Unemployment
Structural – Occurs when workers’ skills do not match those needed for the jobs that are now available
Development of new technology
Discovery of new resources
Changes in consumer demand
Globalization
Lack of education

8. Types of Unemployment Seasonal—Fluctuates from season to season
Farming
Construction
Even professional athletes and teachers become seasonally unemployed.
Cyclical—Results from recessions and economic downturns. Long term pattern.

9. Unemployment 11.1
Unemployment Rate—The % of people in the civilian labor force who are unemployed but actively seeking employment.
Marginally attached workers—people who once held jobs but have given up looking for work. However, they want to work and are open to accepting jobs that are offered. Also known as discouraged workers.

10. Unemployment 13.1
Under-employed—Represents wasted resources and lost output.
Ex. Recent college grad who cannot find a job and must wait tables.
An engineer who works as a construction worker
Note:
Full Employment - Economists generally feel that if 95% of the people are working (5% unemployed is considered acceptable). The economy is healthy and functioning properly.