Unemployment - Short Version - Ellis

Open to page 7 in your packet. Complete page 7 as you work through this Wayground lesson.

Unemployment

Today we will answer the following questions:
Who tracks unemployment?
Why do we care if Americans are unemployed or employed?
Who is considered employed?
Who is considered unemployed?
Who is in the labor force?
What are the different types of unemployment?
What is a healthy unemployment rate?

Unemployment

In the U.S. unemployment is tracked by the Bureau of Labor Statistics (BLS), a federal agency under the U.S. Department of Labor. The BLS collects and reports data on employment, unemployment, and labor force participation through several key surveys and reports.
Employment plays a central role in individual well-being and economic stability.

Why do we care if people have jobs in America?

Economic Growth:

Employment drives consumer spending, which makes up a large portion of the U.S. economy. When people have jobs, they have income to spend on goods and services, fueling business activity and contributing to overall economic growth. Nobody buys from your business if they have no money.

Poverty Reduction:
Jobs provide individuals with income that helps them meet their basic needs, such as housing, food, healthcare, and education. Employment is a primary pathway out of poverty, enabling financial independence and stability.
Social Stability:
Employment helps maintain social stability by reducing inequality, supporting communities, and contributing to social cohesion. High unemployment can lead to higher crime rates, increased stress on social welfare systems, and societal unrest.

Why do we care if people have jobs in America?

Government Revenue:
Jobs contribute to tax revenues through income taxes and business taxes. These taxes fund public services like education, healthcare, infrastructure, and safety nets, improving the quality of life for everyone.

Innovation and Competitiveness:
A well-employed population contributes to innovation, productivity, and the competitiveness of American businesses on the global stage. Skilled workers drive advancements in technology, science, and other sectors critical to the nation’s progress.

In sum, having jobs not only benefits individuals but also strengthens the overall fabric of society and the economy.

Multiple Select

When too many Americans are unemployed...

• our economy suffers

• crime increases

• we have less innovation

• businesses revenue decreases

• people spend more money

Multiple Select

When Americans are employed...

• our economy grows

• crime decreases

• poverty decreases

• stress and depression rises

• technology advances

What is employment?

What do we call people who work for money/have a job? Employed

What are the two types of EMPLOYMENT?

1. Full-time
2. Part-time

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Employment

Multiple Choice

Employed people are people with jobs.

• True

• False

Multiple Select

Check all that apply: People are considered employed if they work....

• Full time

• Part time

• No time

What is unemployment?

What are the two qualifications of being UNEMPLOYED?
1. Do not have a job ... BUT
2. Have looked for employment in the past 4 weeks

* You must have BOTH to be considered unemployed

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UnEmployment

Multiple Choice

People who are unemployed are... (Pick 1 correct answer)

• Without a job

• Without a job and not looking for work

• Without a job and looking for work

• Looking for work

Multiple Choice

Not having a job is the only qualification to be considered unemployed by the Bureau of Labor Statistics.

• True

• False

People without jobs who are NOT counted as unemployed.

*Not everyone can or wants to work.
Remember, we are tracking those who are LOOKING for work (people who want to work).

• Institutionalized (prison, mental hospital)

• Retired

• Stay-at-home parents

• Students (full-time with no job)

• Not reporting income (babysitters, illegal workers, illegal activities)

• Discouraged! (people who gave up, haven't looked for work in 4 weeks)

Multiple Choice

Why is someone locked in solitary confinement in prison not counted as unemployed?

• This person is not looking for employment (They are not allowed to because they're institutionalized).

• The person is retired from a life of crime.

• This person is now a stay-at-home parent.

What is the Labor Force?
The labor force refers to the total number of people in an economy who are either employed or actively seeking employment.

What are the requirements for being counted in the labor force?

• Civilians not institutionalized (prison, mental hospital)

• 16 years or older

• Have a job (employed)

• Be looking for a job (unemployed, but looking)

Multiple Select

Check all that apply: To be in the labor force you must be..

• Civilian and not institutionalized

• 16 years or older

• Have a job

• Not looking for a job

Categorize

Options (5)

Organize these options into the right categories

Labor Force

Not in the Labor Force

Match

Match the following examples of unemployment to their type

• Cyclical

• Seasonal

• Frictional

• Structural

Alex looking for work, but no one is hiring

John applying to be an Easter Bunny in March

Layla leaving her job to go work at TGI-Fridays

Michonne being fired as a cashier do to automated touch screens

• Alex looking for work, but no one is hiring

• John applying to be an Easter Bunny in March

• Layla leaving her job to go work at TGI-Fridays

• Michonne being fired as a cashier do to automated touch screens

USA Unemployment Rates
To find the unemployment rate, we divide the number of unemployed by our current labor force.

• Over 5% Unemployment = Weak Economy, “Recession,” Cyclical

• 4-5% Unemployment = Natural Rate of Unemployment (NRU), “Full Employment,” Frictional + Structural

• Under 4% Unemployment = Overextended

  High Unemployment = Poor Economy (Recession)
  
  

Match

Match the following USA unemployment rate to its description

• 4-5%

• Under 4%

• Over 5%

Full-employment

(some unemployment is okay)

Overextended unemployment (careers/industries are not growing, people are staying too long at jobs)

Weak Economy (cyclical unemployment is occuring)

• Full-employment

  (some unemployment is okay)

• Overextended unemployment (careers/industries are not growing, people are staying too long at jobs)

• Weak Economy (cyclical unemployment is occuring)