Employment, Unemployment, and Macroeconomics Wages

These flashcards cover key terms and concepts related to employment, unemployment, and macroeconomic wages.

Bureau of Labor Statistics (BLS)

The US government agency that compiles and publishes employment and unemployment statistics.

Civilian non-institutional population

Persons 16 years or older who do not live in institutions and who are not on active duty in the Armed Forces.

Employed person

A person who did any work for pay or profit during the week before they are surveyed by the BLS.

Unemployed person

A person who is not employed, but who is actively seeking work and is immediately available.

Labor force

The total number of employed and unemployed individuals.

Unemployment rate

The percentage of the labor force that is unemployed, calculated as unemployed/labor force x 100.

Marginally attached workers

Individuals not in the labor force who are available for work and want to work but have stopped searching for jobs.

Discouraged workers

Individuals who believe there are no jobs available for them and have stopped seeking work.

Underemployment

Working fewer hours than desired and/or at a job that does not match one's skills.

Frictional Unemployment

Unemployment that arises as people transition between jobs.

Structural Unemployment

Unemployment caused by a mismatch between workers' skills and the needs of employers.

Cyclical Unemployment

Unemployment resulting from a drop in aggregate demand during economic downturns.

Recession

A period where GDP falls for two consecutive calendar quarters.

Classical Theory of Unemployment

The theory that views unemployment as resulting from regulations, unions, and public safety nets impacting the labor market.

Sticky wage theories

Theories suggesting that psychological resistance and other factors prevent wages from quickly adjusting downward.

Insider-outsider theory

A theory stating that employed individuals have the power to prevent outsiders from competing for jobs, maintaining their wage levels.

Efficiency wage theory

The idea that employers may pay higher wages to motivate employees and increase productivity.

Keynesian perspective

The viewpoint that the economy is multi-faceted and that quick wage decreases could harm rather than help.

Aggregate Demand

The total demand for goods and services within an economy at a given overall price level and in a given period.