1. By: Amber Belt 5 th period

2. Types of Unemployment It always exists even in a booming economy. Not just a personal issue it is an issue nationally. Frictional unemployment occurs when people take time to find a job. An example of this would be people would change jobs, laid of from their current jobs, or take time to find the right job after they finish school. Seasonal unemployment occurs when industries slow or shut down for a season. Ex: As soon as summer vacation hits you get a summer job.

3. Unemployment cont… Cyclical unemployment is when unemployment that rises during economic downturns and falls when the economy improves. During recessions in the business the demand for goods and services drop. The result of this causes the demand for labor to drop as well. Companies begin to lay off employees. A great example of this would be the Great Depression.

4. Causes of Structural Unemployment Structural unemployment occurs when workers skills do not match the jobs that are available. There are 5 major causes of structural unemployment. The development of new technology new inventions and ideas often push out older ways of doing things. The discovery of new resources new resources replace old resources and the industries that provide them. Changes in customer demand customers often stop buying one product in favor of another. Globalization recent trends in the world economy include a shift from local to global markets. Lack of education people who drop out or fail to obtain the skills needed for today’s jobs usually find themselves unemployed or employed part-time or stuck in a low wage job.

5. Measuring employment The amount of unemployment in the nation is an important clue to the health of the economy. The government keeps track of how many people are unemployed and why. The census an official count of the population. With the census and from the current population survey it helps the Bureau of labor statistics (BLS) indentify with how many people are employed and how many are unemployed. Using the numbers the BLS figures out the unemployment rate or the percentage of the nation’s labor force that is unemployed.

6. Full/Underemployment Full employment is the level of employment reached when no cyclical unemployment exists. Meaning that nearly everyone who wants a job has a job. Doesn’t necessarily mean that they like their job. Underemployed work for a job for which they are over-qualified or working part time when they desire full time work. It also describes the situation of people who want a permanent full time job but have not been able to find one.

7. Discouraged Workers Discouraged workers are people who want a job but give up looking for one. Some people may need to rely on family members or savings to support them. Also these people do not show up in the unemployment rate by the BLS because they are not looking for work. Real world example: me

8. Video http://www.youtube.com/watch?v=5sIfVoxMLB8 Funny video

9. Quiz! 1. What is frictional unemployment? 2. What are the 5 major causes of structural unemployment? 3. What is underemployment? 4. Give an example of seasonal unemployment. 5. What is unemployment rate?

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