Unemployment (2/9)
unemployment rate - percent of ppl in the labor force who desires a job but are not working
labor force - # of ppl in a country classified as employed or unemployed
employed - anyone who works 1 hr/month; temporarily absent from work; part - time
not in the labor force - kids, full-time students, ppl in mental institutions, military personnel, stay-at-home parents, retirees, incarcerated, discouraged workers (mentally and psychologically beaten)
unemployment rate = (# unemployed/ # in labor force) * 100
standard unemployment = 4% - 5%; if > 5%, possible recession
4 Types of Unemployment
- frictional - temp. unemployed, btwn jobs, individual as transferable skills Ex: full-time student
- seasonal - specific type of frictional, depends on time of yr and nature of said job, job will come back Ex: construction worker
- structural - skills become obsolete, jobs won't come back, individual doesn't have transferable skills and must learn new skills. (permanent loss of jobs called Creative Destruction) Ex:outsourcing
- cyclical - results from downturn (recessions); Demand for goods/services decrease, Demand for labor falls and workers fired
Natural Rate of Unemployment/Full Employment (NRU) = frictional + structural (4% - 5%)
Full Employ. means to Cyclical Unemploy.
Okun's Law - when unemployment rises 1% above NRU (4 - 5%) GDP falls abt 2%
Do people who work for other countries from within the US get counted on the US GDP? i think they do but i would like a second opinion. Thanks :)
ReplyDeleteIf you are a student in school but work? Are you considered not in the working force or unemployed??
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ReplyDeleteYou obviously take splendid notes and its great to see that you cover plenty. One thing that stood out in your postings is that you seemed to have rushed your blog and reading it drains the light out of eyes making me want to rest on the bed that sits 2 meters away. Besides the organization great job.
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