Term
click below
click below
Term
Normal Size Small Size show me how
Ch 14
21 vocab terms
Term | Definition |
---|---|
Unemployed | the condition of not having a job but being a member of the labor force. To be considered as this, a person must be jobless yet actively searching for a job by having searched in the last four weeks. |
Employed | the condition of having a job |
Labor force | the number of employed plus unemployed people age sixteen and over |
Unemployment rate | it is equal to the number of unemployment persons divided by the number of people in the labor force |
Labor force participation rate | the 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 | these are people ready and available to work who have conducted a job search within the past twelve months but have not searched in that last four weeks and are therefore not included in official unemployment statistics |
Discourage workers | people who, for whatever reason, 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 the skills necessary for employment and the seekers’ skill set, and government programs that create incentive to remain unemployed |
Creative destruction | a term coined by economist Joseph Schumpeter that refers to the ongoing process of technological innovation an industrial decline |
Efficiency wages | a wage that exceeds that market wage. Encourage worker productivity but also plays a role in creating unemployment |
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. Associated with an economy at the natural rate of unemployment |
Natural rate of unemployment | the rate of unemployment that exists when there is not cyclical unemployment present in the economy. It is through to be independent of the inflation rate |
U1 | the unemployment rate that only includes people in employment fifteen weeks or longer, as published by the bls |
U2 | the unemployment 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 |
U4 | the unemployment rate that adds discourage workers to 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 |