1. Employment

2. Good Morning Take out your notes and answer the following:
What is the difference between nominal GDP and real GDP?
Which measure is more accurate and why?

3. “Unemployment Rate Unchanged; Remains 20%”
If this headline appeared in the news, what would an unemployment rate of 20% mean in the United States?
2. Are all unemployed workers counted in the unemployment rate in the US?
3. How do you think the unemployment rate is determined in the United States?

4. Current Unemployment Rate in Yuma
National Unemployment Rate
yment+rate

5. Yuma= National= Do you know anyone who is unemployed?
What is the significance of this statistic?
How do you think that the unemployment rate is determined?

6. Today Identify different types of unemployment
Determine how a nation’s unemployment rate is determined

7. Key Terms Total Population- All individuals living in a country
Labor Force- All individuals 16 years old and over that either have a job or are actively searching for employment
Are you a part of the labor force?

8. Frictional Unemployment
Occurs when a person quits a job in hope of getting a new job
When a person enters the job market for the first time

9. Seasonal Unemployment
Resulting from a shift in demand for workers due to industries slowing or shutting down for a season or harvest schedules

10. Structural Unemployment
Results from changes in skills employers expect their employees to possess
Causes- lack of education, development of new technology, changes in consumer demand, discovery of new resources, globalization
EX:
-Workers losing their coal-mining jobs because new machinery has revolutionized methods for extracting coal from mines
-Workers who delivered ice to keep foods cold lost their jobs because of refrigerators, run by electricity, replaced ice boxes cooled by ice

11. Cyclical Unemployment
Resulting from decreases in the level of national production (GDP), spending and income
EX: Workers lose their jobs because of a drop in the sale of goods and services or factories reducing their production

12. Discouraged Worker
A person no longer looking for work, therefore not considered a part of the labor force or unemployed

13. Unemployment Video
**Economists consider the economy to be at full employment if there is only frictional and structural unemployment**

14. Coding Unemployment
Determine if each individual is employed, unemployed, or not employed but no longer in the labor force
Categorize the workers into different boxes by square # and name (shown on board)
Place scenarios of employed workers into a green box
Place people not in the labor force into a gray box
Categorize unemployed workers into one of the 4 types of unemployment
Frictional unemployment- brown
Structural unemployment- blue
Seasonal unemployment- yellow
Cyclical unemployment- red

15. Discouraged Workers
Who is an example of a discouraged worker from the 24 squares?
These workers are not included in the unemployment rate

16. Unemployment Rate
The % of the labor force that is willing and able to work, does not currently have a job, and is actively looking for work
Labor Force = Employed + Unemployed
Unemployment rate = (Unemployed/Labor Force) x 100

17. Practice! 20 unemployed workers 80 people in the labor force
What is the unemployment rate?
(20/80) x 100 = 25%
Based on the activity you just completed (with 24 boxes) what is the unemployment rate?

18. 13 employed workers
8 unemployed workers
21 workers in the labor force
(8/21) x 100 = 38%

19. Issues with this rate? Discouraged workers are not included
Individuals who have given up looking for work are not included
People working part-time that want to be working full-time are not included

20. Assignment
Complete Activity 2 and 3 on a separate sheet of paper to be turned in with GDP assignment