Labor Economics Part 1

The labor force is

• employed plus unemployed

• anyone who works

• all adults

• all public employees

Individuals are unemployed due to a lack in skills that modern industries need, change in technology.

• Cyclical Unemployment

• Frictional Unemployment

• Structural Unemployment

• Seasonal Unemployment

When an individual is unemployed because they are looking for a new job.

• Frictional Unemployment

• Cyclical Unemployment

• Structural Unemployment

• Seasonal Unemployment

When individuals are unemployed due to a change in season, e.g. Santa Claus after christmas.

• Seasonal Unemployment

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

Betsy has a part time job working 25 hours a week at Dunkin Donuts. She is

• Employed

• Unemployed

• Discouraged Worker

You are 14 years old and offer to mow your neighbor’s lawn twice a week during the summer. They will pay you $75 / per week.

• Employed

• Unemployed

• Not in the labor force

• Discouraged Worker

You volunteer 15 hours a week at the local food kitchen in town.

• Employed

• Unemployed

• Not in the labor force

• Discouraged Worker

You work for a clothing store that is closing the mall location. You were laid off last week.

• Employed

• Unemployed

• Not in the labor force

• Discouraged Worker

You work as a bank teller. In recent years, more people use electronic payments instead of cash. Due to the this decline in volume, the bank discontinued your position.

• Seasonal Unemployment

• Structural Unemployment

• Frictional Unemployment

• Cyclical Unemployment

When individuals lose jobs due to a decline in the economy during an economic recession.

• Structural Unemployment

• Cyclical Unemployment

• Frictional Unemployment

• Seasonal Unemployment