Unemployment- Macro Topic 2.3

Jacob Clifford discusses the spike in unemployment in 2020, comparing it to the Great Depression. He explains how unemployment is measured by the Bureau of Labor Statistics and highlights issues with the statistics, such as part-time workers and discouraged workers. Clifford also covers the three types of unemployment: frictional, structural, and cyclical, and their impact on the economy. He concludes with a call to action for viewers to engage with additional resources and practice questions.

What was the unemployment rate in the US in August 2020?

• 8.4%

• 10.2%

• 6.7%

• 15.0%

Which organization is responsible for calculating the unemployment rate in the US?

• Federal Reserve

• Bureau of Labor Statistics

• Department of Commerce

• Internal Revenue Service

What is the labor force participation rate?

• The number of people employed divided by the total population

• The number of people employed full-time divided by the total population

• The number of people in the labor force divided by the working-age population times 100

• The number of unemployed people divided by the total population

Why might the official unemployment rate not fully reflect economic conditions?

• It includes discouraged workers

• It does not account for underemployment

• It includes only those over 65 years old

• It counts part-time workers as unemployed

What are discouraged workers?

• Employees who are overqualified for their current job

• Workers who are temporarily between jobs

• Individuals who are working part-time but want full-time work

• People who have stopped looking for work due to frustration

Which type of unemployment is caused by economic downturns?

• Frictional unemployment

• Structural unemployment

• Natural unemployment

• Cyclical unemployment

What is the natural rate of unemployment in the US?

• 6% to 8%

• 4% to 6%

• 2% to 4%

• 0% to 2%