Term
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Term
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Unemployment
period 3
Term | Definition |
---|---|
unemployment | actively searched for work in the last 4 wks but are not currently employed |
employed | worked at least 1 hr in the previous 2 wks |
labor force | # of employed persons plus the number of unemployed persons |
unemployment rate | % of the labor force that is not currently employed |
labor force participation rate | % of the working age population classified as either employed or unemployed |
employment-to-population ratio | % of population classified as employed |
marginally attached workers | people ready and available to work, conducted job search in past yr, but have not searched in past 4 wks |
discouraged workers | do not meet the technical definition |
U1 | unemployed for +15 wks |
U2 | lost a job compared to those who have quit or re-entered force |
U3 | those who fall between the cracks of official rate |
U4 | discouraged workers or demotion |
U5 | usually marginally attached workers |
U6 | most all-inclusive measure of unemployment; includes U1-U5 plus those who are employed part-time |
frictional unemployment | when people voluntarily enter labor force or are between jobs for which they qualify |
structural unemployment | job seekers' skill sets are not in demand because of geography or obsolescence |
creative destruction | as innovation occurs, old technologies and industries are destroyed, which frees up resources |
efficiency wages | exceed equilibrium market wage. Purpose = to encourage productivity |
cyclical unemployment | contractions in business cycle, not voluntary nor mismatched, but lack of spending // creates feedback loop |
full unemployment | cyclical is not present // optimum production |
natural rate of unemployment | in long run, there is a level of unemployment that maintains independent of the inflation rate |