1. Unemployment
Lesson 24
Sections 12, 13

2. The Unemployment Rate (12)
Labor Force
Employment is the measure of how many people are participating as a legal worker in the United States. This means that people who are employed work for a wage(at least 1 hour a week), or are employed by family (as on a farm), and are at least 16 years old, while obeying the laws of employment for their area.
This is not as straightforward as it may sound. Many people work two or more jobs, and that gets counted as separate employed people. Part time workers are counted the same as full time employees in terms of total number employed. Even more complicated are the statistics for the unemployed, and those who are not participating in the workforce.
Labor Force Participation Rate
Unemployment
Unemployment Rate
Marginally Attached Workers
Discouraged Workers
Underemployed

4. Causes of Unemployment (13)
Frictional Unemployment – Looking for new work
Seasonal Unemployment – Farm work, Holiday Seasons
Structural Unemployment – Changing workplace
Cyclical Unemployment – Business Cycles
Natural Rate of Unemployment
Natural Unemployment
Frictional +Structural
Actual Unemployment
Natural + Cyclical

5. Capital vs Labor
Some of the most contentious debates throughout the late 19th and through the 20th century have been the roles of capital and labor in the larger economic world.
Karl Marx, the idealist who came up with communism, believed that labor was the source of all wealth, and therefore labor should be in charge of the distribution of wealth.
On the other hand, capital (money) is the symbolic trade unit of goods and labor, and without it, it becomes very difficult to start and keep businesses going.
As a result, usually “capital” dictates to “labor” the terms of employment, wages, and benefits.
This balance (or imbalance) of power has led to many confrontations, some of them deadly.
To counterbalance the power of capital in the society, labor uses collective action, or unions, to bargain for better wages, working conditions, or benefits.
Because of the growing tilt in society against labor unions, collective bargaining is becoming more difficult, especially with respect to globalization.
With a large labor supply, it is difficult for workers to collectively bargain for better pay, when workers from other countries will do the same work (or more) for far lower wages.

6. Wages and Unions
Why are the minimum wage and unions put into the chapter on causes of unemployment?
These are contentious issues, where many businesses and economists claim that having a minimum wage destroys jobs and depresses the economy.
Others feel that these claims are not entirely true, and that having a minimum wage improves the quality of life for low wage workers and can stimulate the economy.