1. Types of Unemployment  Frictional Unemployment  Structural Unemployment  Cyclical Unemployment  Quick Practice  Lets add Seasonal Unemployment

2. Natural Rate of Unemployment  Frictional U + Structural U = NRU = 5% U = FE  Cyclical U is Macroeconomic Unemployment

3. Who are the Unemployed? It’s a long story… Start with the total population of the US: Subtract those under 16 Subtract those in the Armed Forces and "institutionalized"  This gives you the “Non Institutional Adult Civilian Population”

4. Who are the Unemployed cont. From Non-Institutional Adults… Subtract those already retired and the “homemakers” Subtract full time students over the age of 16 Subtract the "discouraged" (those not looking)  This leaves the “Civilian Labor Force”

5. Who are the Unemployed cont. From the Civilian Labor Force… Subtract Full time employees Subtract Part time workers (15-39 hr/wk) Subtract unpaid family business workers (family) Subtract anyone on sick leave, strike, or vacation  This leaves you with the “Employed Population”

6. Who are the Unemployed? cont. Everyone else… They must be either looking for a job and not finding one, or in between jobs/changing careers NOTE: People who would like work but have given up looking for a job ar “Discouraged workers” and DO NOT count toward the official unemployment rate.

7. Other things to know…  Labor-Force Participation Rate  Labor productivity vs. Efficient use of labor  Human capital  The knowledge, skills, training, etc… that make a person productive. any other measure of quantity of labor.  It is not the civilian labor force or any measure of the Quantity of Labor