1. Total Population322,100,000 Labor Force156,700,000 Children70,800,000 Employed148,800,000 Noninstitution Population251,300,000 Unemployed7,900,000 Not in Labor Force94,600,000 U. S. Labor Market Statistics for September, 2015 (rounded to the nearest 100,000) Unemployment and Labor Market Statistics Total Population Children (under 16) Noninstitution Population Not in Labor Force Labor Force EmployedUnemployed Unemployment Rate = Labor Force Unemployed = 156,700,000 7,900,000 = 5.1% Labor Force Participation Rate = Noninstitution Population Labor Force = 251,300,000 156,700,000 = 62.4% Those unwilling or unable to work Those who have a job Those willing and able to work who do not have a job Those willing and able to work Question: Where are you? 70,800,000 322,100,000 251,300,000 148,800,000 156,700,000 7,900,000 94,600,000 September 2015 Unemployment Rate = 5.1 percent. Question: 5.1 percent of what?Question: Precisely what does it mean to be unemployed?

3. Men Women Year Work-Age Pop Labor Force LF Part Rate (%) Work-Age Pop Labor Force LF Part Rate (%) 195050,726,00043,750,00086.2 54,270,00018,372,00033.9 196055,662,00046,406,00083.4 61,583,00023,252,00037.8 197064,304,00051,250,00079.7 72,782,00031,546,00043.3 198079,398,00061,489,00077.4 88,348,00045,485,00051.5 199090,377,00069,028,00076.4 98,787,00056,828,00057.5 2000100,964,00076,280,00074.8 110,613,00065,306,00059.9 2010115,174,00081,985,00071.2 122,656,00071,914,00058.6 Labor Force Participation Rate = Working-Age Population Labor Force Question: Why has the labor force participation rate for women increased? Question: Why has the labor force participation rate for men decreased? Question: Have American men just become lazier over the past few decades? Question: In which category are retirees? YearTotal PopulationPopulation 65 and over 1950152,300,00012,400,000(8.1%) 2010315,000,00040,900,000(13.0%)

4. Labor Market and Unemployment Market Forces Question: How many workers are unemployed at the equilibrium wage? None Explanations for Unemployment Job Search: Dynamic Labor Market Minimum Wage Theory of Efficient Wages Should push the actual wage to the equilibrium wage.

5. Job Search Dynamic Labor Market Is an unemployment rate of 0 a realistic goal? Would an unemployment rate of 0 be desirable? Employed Unemployed Not in Labor Force Retire Discouraged Entrants Lost job Laid off Fired Find job Return from layoff

6. Minimum-Wage Legislation Theory of Efficient Wages Firms may find it in their best interests to offer a wage above the equilibrium wage. Worker Effort Worker Turnover Worker Quality Worker Health At the efficient wage: Quantity of Labor Demanded Quantity of Labor Supplied < S D L w w* S D L w L* w Min Unemployed