Unemployment and Labor Market Dynamics

These flashcards cover key terms and concepts related to unemployment, the labor market, job statistics, and policies affecting employment.

Employed

Individuals who have worked, including paid employees, those in their own business, and unpaid workers in family businesses.

Unemployed

Those who are not currently working but are available for work and have actively sought employment in the prior four weeks.

Not in the labor force

Individuals not employed and not actively seeking work, including full-time students, homemakers, and retirees.

Labor Force

The total number of employed and unemployed individuals in the economy.

Unemployment rate

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

Labor-force participation rate

The percentage of the total adult population that is in the labor force, represented as (Labor force/Adult population) x 100.

Marginally attached workers

Persons who are not currently in the labor force but want to work and have looked for work at some point in the recent past.

Discouraged workers

Marginally attached workers who have given a job-market-related reason for not currently looking for work.

Structural unemployment

A form of unemployment that occurs when there are not enough jobs in the economy for everyone who wants one, often due to wage levels above equilibrium.

Frictional unemployment

Temporary unemployment that occurs when workers are between jobs or entering the labor market.

Efficiency wages

Wages that are set above the equilibrium level to increase worker productivity and reduce turnover.

Minimum-wage laws

Laws that set the lowest wage a worker can be paid, which can lead to surplus labor and unemployment if above equilibrium.

Collective bargaining

The process by which unions and firms negotiate the terms of employment.

Job search

The process by which workers look for jobs that match their skills and preferences.

Cyclical unemployment

Unemployment associated with economic recessions and fluctuations in the business cycle.

Natural rate of unemployment

The level of unemployment that occurs even when the economy is at full employment, encompassing frictional and structural unemployment.

Labor-market experiences

Different experiences of various demographic groups within the labor market, highlighting disparities in unemployment and participation rates.

Official unemployment rate

A measure of joblessness that counts only those actively seeking work and excludes discouraged workers and those not in the labor force.

Unemployment insurance

A government program that provides financial support to workers who become unemployed, potentially affecting their job-search behavior.