Macroeconomic ch2 ( unemployment )

permanently damages a person’s job prospects by destroying human capital.

• Prolonged unemployment

• Working-age population

• Labor force

The number of people aged 16 years and older who are not in jail, hospital, or some other institution

• Prolonged unemployment

• Working-age population

is the sum of employed and unemployed workers.

• Prolonged unemployment

• Labor force

is ( Number of people unemployed ÷ labor force) x 100.

• The labor force participation rate

• The unemployment rate

is the percentage of the working-age population who have jobs.

• The labor force participation rate

• The employment-to-population ratio

In June 2014, the labor force was 156 million and the working-age population was 248 million.

• The labor force participation rate

  = 62.9 percent.

• The employment-to-population ratio = 62.9 percent.

• The unemployment rate = 62.9 percent.

is a person who currently is neither working nor looking for work but has indicated that he or she wants and is available for a job and has looked for work sometime in the recent past.

• A marginally attached worker

• A discouraged worker

Person who has stopped looking for a job because of repeated failure to find one.

• A marginally attached worker

• A discouraged worker

is unemployment created by changes in technology and foreign competition that change the skills needed to perform jobs or the locations of jobs.

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

• Natural unemployment

is unemployment that arises from normal labor market turnover.

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

• Natural unemployment