ECON 102 1st Edition Lecture 15 Outline of Last Lecture 1 GDP and CPI Tracking the Macroeconomy a Solving problems b Key terms Outline of Current Lecture I Unemployment Rate Current Lecture Employment The number of people currently employed in the economy either full time or part time Unemployment The number of people who are actively looking for work but aren t currently employed o Retirees Disabled Homemakers Labor Force The sum of employment and unemployment Labor Force Participation Rate The percentage of the population aged 16 or older that is in the labor force Labor Force Population age 16 and older x 100 Unemployment Rate The percentage of the total number of people in the labor force who are unemployed of unemployed workers labor force x 100 Discouraged Workers Nonworking people who are capable of working but have given up looking for a job because of the state of the job market Marginally Attached Workers Those who would like to be employed and have looked for a job in the recent past but are not currently looking for work Underemployment The number of people who work part time because they cannot find full time jobs Workers who spend time looking for employment are engaged in job search Frictional Unemployment Unemployment due to the time workers spend in job search Structural Unemployment Unemployment that results when there are more people seeking jobs in a labor market than there are jobs available at the current wage Minimum Wage A government mandated floor on the price of labor o In the US the national minimum wage in 2010 was 8 25 per hour Unions By bargaining for all a firm s workers collectively collective bargaining unions can often win higher wages from a company These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Efficiency Wages Wages that employers set above the equilibrium wage rate as an incentive for better performance o Side effects of Government Policies Public policies designed to help workers who lose their jobs these policies can lead to structural unemployment o Natural Unemployment Frictional Unemployment Structural Unemployment o Actual Unemployment Natural Unemployment Cyclical Unemployment
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