1. Unemployment

2. Define Unemployment
The number of people who are actively looking for work but are not currently employed

3. Calculate Unemployment

4. Tracking Unemployment
The Bureau of Labor Statistics tracks unemployment data (as well as price levels)
Current Population Survey
Uses 60,000 Households
Specifics not discussed in class for interested students may be found here:

5. The Census Bureau’s Household Survey
How BLS Measures Employment Status
Worked one or
more hours
for pay?
Yes
Employed No
Yes
Temporary
layoff?
Unemployed No
Searched for
work?
Yes
Unemployed No
Not in Labor Force

6. The Census Bureau’s Household Survey
Employment Status of the U.S. Population—2016
Employed
152.0 Million
Not in Labor Force
Under 16 Military or Institutionalized
Unemployed
7.5 Million
95.1 Million
70.4 Million
Civilian Noninstitutional Population
Labor Force
U.S. Population Million People

7. Types of Unemployment Frictional Structural Seasonal Cyclical
Time “between” jobs
Structural
Wrong skill-set - or - more people seeking jobs than there are jobs available
Seasonal
Based on the season
Cyclical
Recession

8. Sources of Structural Unemployment & Wage Rigidity
Minimum Wages
Government price control
Labor Unions
Pushes for higher wages and restricts job openings
Efficiency Wages
Higher pay for more productivity
Public Policy
Unemployment Insurance – subsidizing unemployment

9. Types of Unemployment
Natural Rate of Unemployment (A.K.A. – Full Employment)
includes only Frictional + Structural (no Cyclical)
around 4.5% to 5.0%

10. Biases In Unemployment
Marginally Attached Workers
currently want a job, have looked for work in the last 12 months and are available for work.
Discouraged Workers
Discouraged workers are a subset of the marginally attached.
Discouraged workers report they are not currently looking for work
Underemployment
Work part-time but would like full time
The BLS attempts to track and correct these issues. Data series may be found at: