Unemployment and the Labor Force

What does the unemployment rate measure?

• 1) The percentage of individuals who are employed.
• 2) The percentage of individuals who are unemployed and actively seeking work.
• 3) The percentage of individuals who are not in the labor force.

Who reports the monthly unemployment rate in the United States?

• 1) Department of Labor
• 2) Bureau of Labor Statistics
• 3) Federal Reserve

What are the three main types of unemployment?

• 1) Cyclical, structural, and seasonal.
• 2) Frictional, structural, and seasonal.
• 3) Frictional, structural, and cyclical.

Which type of unemployment occurs when there is a mismatch between the skills of the workforce and the available jobs?

• 1) Frictional
• 2) Cyclical
• 3) Structural

What is the labor force participation rate?

• 1) The percentage of individuals who are not in the labor force.
• 2) The percentage of the working-age population that is either employed or actively seeking employment.
• 3) The percentage of individuals who are employed.

What does a low labor force participation rate indicate?

• 1) Discouraged workers who have given up looking for work.
• 2) Both 1 and 3.
• 3) A lack of job opportunities.