Ch. 7 - unemployment

4.3

what is the uS unemployment rate

work-eligible population

civilian, noninstitutionalized, 16+, 80% pop

active duty, institutionalized (jail,…), retirees, stay at home

groups of people not included in work-eligible population

structural unemployment

unemployment caused by changes in industrial makeup of economy

training and education, gov. subsidies

ways to reduce structural unemployment

frictional unemployment

unemployment caused by delays in matching available jobs and workers

• college grad

• moving

• voluntarily quitting

examples of frictional unemployment

cyclical unemployment

unemployment caused by economic contraction

Natural rate of Employment

typical unemployment rate that occurs when the economy is growing normally