Unemployment Flashcards

Flashcards about unemployment from lecture notes.

Labor force

The population of individuals in a nation who are of legal working age and are either employed or unemployed.

Unemployment

People of working age who are without work, available for work, and actively seeking employment.

Unemployment rate

Number of people unemployed expressed as a percentage of the total labor force.

Aggregate Supply of Labor (ASL)

The total number of an economy’s workers that are willing and able to work in the economy at every given average wage rate.

Aggregate Demand for Labor (ADL)

The total demand for labor (by all firms in the economy) at every given average wage rate.

Claimant count

A measure of unemployment, in which the number of people claiming Job Seeker's Allowance (JSA) is counted.

Demand deficient or cyclical unemployment

Unemployment that results from a downturn in the business cycle, caused by a lack of aggregate demand in the economy.

Frictional unemployment

When people are between jobs, or they have left education and are waiting for their first job.

Structural unemployment

Occurs as a result of the changing structure of an economy.

Seasonal unemployment

Demand for certain workers falls at certain times of the year.

Natural rate of unemployment

Structural unemployment + frictional unemployment + seasonal unemployment