Macroeconomy: Unemployment, Inflation, and Labor Force

Unemployment Rate

Percentage of eligible people without formal jobs

Informal Work

Non-official work affecting unemployment rate measures

Work Disincentives

Factors reducing job-seeking due to policies or laws

Labor Force

Individuals employed or seeking employment

Labor Force Participation Rate

Percentage of adults in the labor force

Unemployment Cost

Economic loss due to joblessness

Frictional Unemployment

Temporary joblessness during job search

Structural Unemployment

Long-term joblessness from skill mismatches

Cyclical Unemployment

Joblessness from insufficient total demand

Inflation

Continuous rise in average prices of goods

Deflation

Continuous decrease in average prices of goods

Purchasing Power

Money's value for buying goods and services

Business Fluctuations

Ups and downs in national economic activity

Expansion

Accelerating national economic activity

Contraction

Slowing down national economic activity

Recession

Negative or slow growth in business activity

Depression

Extreme and severe recession

Leading Indicators

Events preceding changes in business activity

Informal Work Impact

Influence on labor force participation and unemployment rates