1. Agenda- 12/1 Ch. 13.3 Lecture (RS) Ch. 13.3 WS and Book ?’s (LS)
HW: -Community Service due
Monday, 12/11
GRAB A TEXTBOOK!

2. Unemployment
Ch. 13, Sect. 3

3. Unemployment: Who is considered unemployed?
Unemployment is the condition of those who are willing and able to work and are actively seeking work but who do not currently work.
Who is unemployed?

4. Who is counted?
Civilian Labor Force is the total number of people in the working age group (16 years or older) who are either employed or actively seeking work.
Note! Slightly less than half of the total labor force belong in this class, or about 150 million people.

5. How do we measure unemployment?
Unemployment is calculated by dividing the number of unemployed by the number in the civilian labor force.
# of Unemployed Persons = Unemployment
Civilian Labor Force Rate
Unemployment

6. Types of Unemployment 1) Frictional Unemployment
People who are temporarily between jobs, they suffer little economic hardship from their lack of employment.

7. Types of Unemployment (cont.)
2) Structural Unemployment
A serious type of unemployment!
Reduction in demand for workers due to a fundamental change in the operations of the economy.
Skills that do not match the employer’s needs.
Geographical separation from employment.
Note! Many times the jobs are lost forever and many will not come back.
“Outsourced”

8. Types of Unemployment (cont.)
3) Technological Unemployment
Technological unemployment is caused when mechanical automation replaces the human worker skill-set.
“Robot Day Care”

9. Types of Unemployment (cont.)
4) Cyclical Unemployment
Unemployment from a low level of aggregate demand caused by swings in the business cycle.

10. Types of Unemployment (cont.)
5) Seasonable Unemployment
This type of unemployment is associated with time of year or seasons. This occurs every year regardless to the health of the economy.
“Santa”

11. Costs of Instability 1) GDP Gap – difference b/t
Actual GDP & Potential GDP
2) Misery Index – Inflation + Unemployment
3) Uncertainty
4) Political Instability
5) Crime, Poverty, & Family Instability
Types of Unemployment Overview

12. Homework Ch. 13 WS plus P. 375 - # 2, 3, 4, and 5