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Unemployment
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Discouraged Workers
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Unemployment

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TermDefinition
Unemployment % of labor force unemployed. must not have a job, over 16, and done a job search in past 4 weeks
Discouraged Workers Given up on search
Labor Force Participation Rate % of working age population unemployed or employed
Employment-to-population ratio employed people divided by people able to work.
Marginally Attached Workers Not in official unemployment. Ready to work, searched for a job in past 12 months but not in past 4 weeks
U3 Unemployment rate by regular standards
U1 15 weeks or longer unemployed only
U2 Only those who lost their jobs. Not those who quit or never had
U4 Discouraged included
U5 Marginally attached Included Discouraged included
U6 Marginally attached Included Discouraged included those employed part time for economic reasons included
Frictional Unemployment those who voluntarily enter work force but between jobs. natural and will decrease as tech increases
Structural Unemployment services no longer in demand or obsolete.
Creative Destruction when structural unemployment destroys old industries as new one are made
Efficiency Wages wages exeed equilibrium to keep workers. also makes more efficient workers
Cyclical Unemployment When contractions of business cycle cause unemployment
Full Employment Cyclical Unemployment does not exist. every policy makers dream
Natural Rate of Unemployment Level of uneployment we maintain regardless of inflation
Employed Those who worked one hour in past week
Labor force Number employed + uneployed
Unemployment Rate % of those not currently employed but a part of work force
Created by: jonk22
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