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unemployment
Term | Definition |
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unemployed | persons sixteen years or older that have looked for a job in the last four weeks, but are still currently not employed |
employed | persons that have worked at least an hour in the last two weeks |
labor force | the number of employed persons and the unemployed persons, but those who fit neither of these are not considered in the labor force |
unemployment rate | the percentage of the labor force that is currently unemployed |
labor force participation rate | percentage of the working age population classified as either employed or unemployed |
marginally attached workers | these are persons that have conducted a job search in the last twelve months, but have not searched in the last four weeks |
discouraged workers | are unemployed in a general sense but since they don't meet the technical definition, there unemployment does not have an affect on official unemployment rate |
U1 | the unemployment rate that only includes people unemployed fifteen weeks or longer |
U2 | the unemployment rate that only includes people who have lost a job a opposed to those who have quit or those who have entered or re-entered the labor force |
U3 | the official unemployment rate |
U4 | the unemployment rate that adds discouraged workers to the official unemployment rate |
U5 | the unemployment rate that includes all marginally attached workers |
U6 | the most all-inclusive measure of unemployment, which includes all those listed in the U1-U5 plus those who are employed part time because of economic reasons |
fictional unemployment | occurs when people voluntarily enter the labor force or when they are between jobs for which they are qualified |
structural unemployment | occurs when a workers skill sets are not in demand because of geography or obsolescence |
creative destruction | refers to the ongoing process of technological innovation and industrial deline |
efficiency wages | those that exceed the equilibrium market wage |
cyclical unemployment | occurs because of contractions in the business cycle |
full employment | occurs when cyclical unemployment is not present in the economy |
natural rate of unemployment | occurs when there is no cyclical unemployment present in the economy |
employment-to-population ratio | the percentage of the working age population that is classified as employed |