Understanding Unemployment and Economic Growth

These flashcards cover key concepts related to unemployment, economic growth, and measurement of labor statistics.

Economic Growth

An increase in the production of goods and services in an economy over a period of time.

GDP

Gross Domestic Product, a monetary measure of the market value of all final goods and services produced in a specific time period.

Labor Force

The total number of people who are employed and unemployed but actively seeking work.

Out of Labor Force

Individuals who are not working and are not seeking employment, such as retirees, students, and discouraged workers.

Unemployment Rate

The percentage of the labor force that is unemployed and actively seeking employment.

Participation Rate

The proportion of working-age individuals who are part of the labor force.

Economic Cost of Unemployment

The loss of income, reduction in tax revenue, and overall decrease in economic productivity due to individuals being unemployed.

Psychological Cost of Unemployment

The negative impact on mental well-being and self-esteem associated with job loss.

Social Cost of Unemployment

The potential increase in crime and domestic issues related to high levels of unemployment.

Long Term Unemployment

Unemployment that lasts for an extended period, typically over six months.

Short Term Unemployment

Unemployment that lasts a short period, usually less than six weeks.

Discouraged Workers

People who have given up looking for work and exit the labor market.

Involuntarily Part-time Workers

Individuals working part-time because they are unable to find full-time employment.

Unemployment Spell

The duration or length of time an individual remains unemployed.

Human Capital

The collective skills, knowledge, and experience possessed by individuals, viewed in terms of their value to an organization or country.