Unemployment and Business Cycle

Unemployment is?

• Workers that are actively looking for a job but aren’t working.

• The percent of people in the labor force who want a job but are not working.

• Temporary unemployment or being between jobs.

• Changes in the labor force make some skills obsolete.

The Unemployment Rate is?

• Workers that are actively looking for a job but aren’t working.

• The percent of people in the labor force who want a job but are not working.

• Temporary unemployment or being between jobs.

• Changes in the labor force make some skills obsolete.

Temporary unemployment or being between jobs.

Individuals are qualified workers with transferable skills.

• Cyclical Unemployment

• Structural Unemployment

• Frictional unemployment

Changes in the labor force make some skills obsolete.

These workers DO NOT have transferable skills and these jobs will never come back. Workers must learn new skills to get a job.

• Cyclical Unemployment

• Structural Unemployment

• Frictional unemployment

Unemployment caused by a recession.

As demand for goods and services falls, demand for labor falls and workers are laid off.

This is sometimes called “demand deficient unemployment.”

• Cyclical Unemployment

• Structural Unemployment

• Frictional unemployment

is a specific type of frictional unemployment, which is due to time of year and the nature of the job.

• Technological Unemployment

• Creative destruction

• Quarter Unemployment

• Seasonal Unemployment

Type of structural unemployment where automation and machinery replace workers.

• Technological Unemployment

• Creative destruction

• Quarter Unemployment

• Seasonal Unemployment

The permanent loss of these jobs is called

• Technological Unemployment

• Creative destruction

• Quarter Unemployment

• Seasonal Unemployment

The US is at full employment when there is        % unemployment.

• 7-9%

• 0%

• 0-2%

• 4-6%

What are the 3 areas of unemployment?

• Cyclical Unemployment

• Structural Unemployment

• Frictional unemployment

• Transitional Unemployment