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Unemployment - Ch.14
Term | Definition |
---|---|
Unemployed | The condition of not having a job but being a member of the labor force |
Employed | The condition of having a job |
Labor Force | The number of employed plus unemployed age sixteen and over |
Unemployment Rate | Equal to the number of unemployed persons divided by the number of people in the labor force |
Labor Force Participation Rate | Labor force divided by the working age population |
Employment-to-Population Ratio | The number of employed people divided by the working age population |
Marginally Attached Workers | |
Discouraged Workers | People who have given up the job search and are not officially classified as unemployed |
Frictional Unemployment | Voluntary unemployment that occurs when a person enters the labor force and looks for a job |
Structural Unemployment | Unemployment that is caused by the permanent destruction of jobs in a dying industry, a mismatch between necessary skills and seekers' skill set, and government programs |
Creative Destruction | Refers to the ongoing process of technological innovation and industrial decline |
U1 | Unemployment rate that only includes people unemployed fifteen weeks or longer |
U2 | Employment rate that only includes people who have lost a job as opposed to those who have quit or those who have entered or reentered the labor force |
U3 | The official unemployment rate |
U5 | The unemployment rate that includes all marginally attached workers |
U6 | The most all-inclusive measure of unemployment. Includes U1-U5 and those who are employed part time |
Cyclical Unemployment | Unemployment associated with downturns in the business cycle |
Full Employment | The level of employment that exists when the economy is being productively efficient |
Natural Rate of Unemployment | The rate of unemployment that exists when there is no cyclical unemployment present in the economy |
Efficiency Wages | A wage that exceeds the market wage. |
U4 | Unemployment rate that adds discouraged workers to the official unemployment rate |