Unemployment 13.1

1
Unemployment 13.1

• Why should our nation be concerned about
  unemployment?
• Gauges the economic health of a country by
  tracking the number of people who are out of
  work.
• High rates can hurt the economy
• Nation loses goods and services
• Businesses lose sales
• Government support of unemployed
• Societal consequences of unemployment?

2
Identifying employed/unemployed 13.1

• Classified as part of the labor force if
• Are 16 years of age
• Are actively looking for work
• Worked for pay one or more hours
• Worked w/o pay in family business 15 hours or
  more.
• Have a job but did not work because of illness,
  weather, vacations, labor disputes.

3
4 Categories of Unemployment

• Frictional
• Structural
• Seasonal
• Cyclical

4
Types of Unemployment 13.1

• Four Categories of Unemployment
• FrictionalWorkers moving from one job to another
  job. Voluntary or involuntary.
• Examples Take time off to search for a job
• Laid off because of
  issues within the
• 
  company
• Fired
• take time off after
  finishing school
• take time off to care
  for young children

5
Types of Unemployment

• Structural Occurs when workers skills do not
  match those needed for the jobs that are now
  available
• Development of new technology
• Discovery of new resources
• Changes in consumer demand
• Globalization
• Lack of education

6
Types of Unemployment

• SeasonalFluctuates from season to season
• Farming
• Construction
• Even professional athletes and teachers become
  seasonally unemployed.
• CyclicalResults from recessions and economic
  downturns. Long term pattern.

7
Unemployment 13.1

• Measuring Unemployment
• Census Bureau measures
• How many people unemployed?
• How long been jobless?
• How does it affect different regions of the
  country?
• How does it affect different industries?
• They conduct surveyspublish results.

8
Unemployment 11.1

• Unemployment RateThe of people in the civilian
  labor force who are unemployed but actively
  seeking employment.
• Marginally attached workerspeople who once held
  jobs but have given up looking for work. However,
  they want to work and are open to accepting jobs
  that are offered. Also known as discouraged
  workers.

9
Unemployment 13.1

• Under-employedRepresents wasted resources and
  lost output.
• Ex. Recent college grad who cannot find a job and
  must wait tables.
• An engineer who works as a construction worker
• Note
• Full Employment - Economists generally feel that
  if 95 of the people are working (5 unemployed
  is considered acceptable). The economy is healthy
  and functioning properly.