Study Guide: Terms and Definitions
20 Cards in this Set
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BLS population categories
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Working-age population
labor force vs those not in labor force
employed vs unemployed
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Working Age Population
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people 16+
not in jail, hospital, or institutional care
not in Armed Forces
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Labor Force
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number of people employed vs those unemployed
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Population Survey Criteria Employed
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all people who, during the week before survey, either
worked least 1 hour as paid employee or 15 as unpaid family worker in family buisiness or
were not working but had jobs from which they were temporarily abesent
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Population Survey Criteria Unemployed
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all people, who during the week before survery
had no employment
were available for work
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Labor Market Indicators
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Unemployment rate
Labor force participation rate
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Unemployment Rate
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=number of people unemployed / Labor Force X 100
U-3
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Labor Force Participation Rate
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Labor Force / Working-age population X 100
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Alternative Measures of Unemployment
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Marginally attatched workers
part- time workers
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Marginally attached worker
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person who does not have a job
who is available and willing to work
has not made specific efforts to find a job in previous 4 weeks
but has looked for work sometime in the recent past
*neither unemployment rate nor labor force participation rate include marginally attached workers…
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Discouraged worker
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a marginally attached worker
who has not made specific efforts to find a job within past 4 weeks
because previous unsuccessful attempts were discouraging
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"New Economy"
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the high-technology sector driven by the expansion of the internet
lowered the unemployment rate from 1995-2000 to below average
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BLS broad measurements of unemployment rate
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U-4, U-5, U-6
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Types of Unemployment
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Frictional Unemployment
Structural Unemployment
Cyclical Unemployment
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Frictional Unemployment
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unemployment that arises from people entering and leaving the labor force,
from quitting jobs to find better ones
and from ongoing creating and destruction of jobs
a permanent and healthy phenomenon in a dynamic, growing economy
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Structural Unemployment
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the unemplyment that arises when changes in technology
or International competition change the skills needed to perform jobs
change in locaiton of jobs
ususally lasts longer than Frictional cuz workers must retrain or relocate
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Cyclical Unemployment
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higher than normal employment rate at a business cycle trough and the lowe than normal unemployment cycle at a peak.
EX:a worker who is laid off because the economy is in a recession and who gets rehired some months later when the expansion begins.
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Natural Unemployment
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unemployment that arises from the frictions and structural change when there is no cyclical unemployment.
unemployment rate when the econonly is at full employment
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Full Employment
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when the unemployment rate = the natural unemployment rate
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Factors influencing natural employment
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-age distribution of the population
-pace of structural change
-rel wage rate
-unemployment benefits
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Final Study Guide: Econ 203