1. Types of Unemployment

2. Frictional Unemployment
Occurs when people try to find a job. They are graduating from high school or college, looking for better working conditions, or seeking a higher wage.
*Not always negative.
Ex. Job change Dissatisfied, Schooling, “Transitional”

3. Seasonal Unemployment
Occurs when industries adjust to the natural seasonal production schedule.
*Not always negative.
Ex. Agricultural, summer, or holiday jobs.

4. Structural Unemployment
Occurs when worker’s skills do not match the jobs that are available.
Ex. New technology, changes in consumer demand, globalization, lack of education.

5. Cyclical Unemployment
Mirrors the economic cycle. If the economy expanded again, these workers would be able to go back to work.
Ex. Low during peak, high during recession.
”laid-off”
”down-size”
”cut-backs”

6. Additional Factors to Unemployment (Limitations)
Underemployment
Ex. PhD Flipping Burgers or
Working part-time when full
time is desired.
Discouraged Worker
Ex. Could not find a job so
they gave up.
These do not show up in the
unemployment rate.
*Worst type!
Other groups that do not count towards unemployment:
Children, Prisoners, Military, Disabled

7. U.S. Unemployment Rate
Somewhere around 5% is considered Full Employment

8. Figuring Out the Unemployment Rate
Employed: Everyone currently working including part-time workers Unemployed: People looking for work or temporarily laid off from work Unemployment Rate: Unemployed Labor Force (Employed + Unemployed) Labor Force: Employed + Unemployed (unemployed) divided by (labor force)= x 100 = 7% unemployment rate.
155.2 Million
11.7 Million
11.7 Million
166.9 Million

9. You Try Employed = 145 million The number of unemployed =9.8 million
Is this a high or low unemployment rate?
9.8 = or 6.3% Unemployment Rate
154.8

10. Calculating Unemployment
Now You Try
Calculating Unemployment

11. Year Civilian Employed Unemployed Total Unemployment Population Rate % % %