Term
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Term
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employ/unemploy
definitions
Term | Definition |
---|---|
unemployed | persons sixteen years of age or older that don't have a job |
employed | those who have worked at least one hour in the previous two weeks |
labor force | the number of employed persons plus the number of unemployed persons |
unemployment rate | a percentage of the labor force that is not currently employed |
labor force participation rate | the percentage of the working age population classified as either employed or unemployed |
employment-to-population ratio | the percentage of the working age population that is classified as employed |
marginally attached workers | people ready and available to work |
"discouraged workers" | people unemployed in the general sense, but they do not meet the technical definition |
frictional unemployment | occurs when people voluntarily enter the labor force |
creative destruction | as innovation occurs, old technologies and industries are desroyed |
structural unemployment | occurs when job seekers; skill sets are not in demand because of geography or obsolescence |
efficiency wages | wages that exceed the equilibrium market wage |
cyclical unemployment | occurs because of contractions in the business cycle, it is not voluntary, nor is it the result of a skill-set mismated |
full employment | it occurs when cyclical unemployment is not present in the economy |
natural rate of unemployment | it's associated with full time employment |
U3 | The official unemployment rate |
U1 | it only includes people unemployed fifteen weeks or longer |
U2 | it only includes people who have lost a job as opposed to those who have quit or those who have entered or re-entered the labor force |
U4 | it adds discouraged workers to the official unemployment rate |
U5 | it includes all marginally attached workers |
U6 | it is the most all-inclusive measure of unemployment and includes all of those who are employed part-time because of economic reasons |