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Economic Challenges: Unemployment.
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Essential Standards The student will explain how unemployment is calculated. The student will identify structural, cyclical and frictional unemployment.
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The Unemployment Rate The unemployment rate is measured each month. The unemployment rate is measured each month. The US unemployment rate as of May, 2008 was 5.5%, as of September, 6.1%, as of October, 6.4%, as of December, 7.2%, as of March, 2009, 8.5%., as of June, 2009, 9.1%., as of Nov, 2009, 10.2%., as of March 2010, 9.7%., September 2010, 9.2%. The US unemployment rate as of May, 2008 was 5.5%, as of September, 6.1%, as of October, 6.4%, as of December, 7.2%, as of March, 2009, 8.5%., as of June, 2009, 9.1%., as of Nov, 2009, 10.2%., as of March 2010, 9.7%., September 2010, 9.2%. This measurement is a key measure of economic health. This measurement is a key measure of economic health.
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Some Sub-Categories The white female unemployment rate is 7.3% The white female unemployment rate is 7.3% The white male unemployment rate is 8.9% The white male unemployment rate is 8.9% The black male unemployment rate is 19% The black male unemployment rate is 19% The black female unemployment rate is 12.4% The black female unemployment rate is 12.4% The Asian unemployment rate is 7.5% The Asian unemployment rate is 7.5%
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Measuring Employment Bureau of Labor Statistics—conducts a survey of 50,000 each month… This represents the US population… Based on these interviews, the BLS computes the… Unemployment rate— the percentage of the work force that is unemployed.
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You Are Employed… If you meet any of the three criteria: If you meet any of the three criteria: 1. If you have worked for pay for one or more hours this week. 2. If you have worked without pay in a family business 15+ hours. 3. If you have a job, but have been ABSENT due to illness, weather, vacation, etc.
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You Are Unemployed… 1. If you don’t meet any of the preceding criteria… 2. And if you’ve been actively looking for work during the past 4 weeks.
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Types of Unemployment: Frictional Includes people who have decided to LEAVE one job and LOOK for another. Also, new entrants and re-entrants into the LABOR FORCE. Economists consider frictional unemployment as a NORMAL part of a healthy economy.
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Structural Unemployment Structural unemployment occurs as a result of changes in TECHNOLOGY or CONSUMER PREFERENCES. EX: Many typewriter repairman had to find new work as typewriters were replaced by computers. Structural unemployment is also considered a healthy part of the economy.
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Cyclical Unemployment ► Unemployment that results from economic DOWNTURNS. ► Cyclical is the most harmful to the economy. ► During the Great Depression, the unemployment rate reached an all time high of about 25%. ► As recently as 1991 and 1992, the unemployment rate reached 7.5%.
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Levels of Employment Full employment—no cyclical unemployment exists (but other categories do). Underemployment— working at a job for which you are overqualified... Or working part-time when full time is desired. Discouraged workers— have given up looking…and do not appear in the unemployment rate.
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