unemployment

noninstitutional population

population age 16 and older

labor force

all people aged 16 and older who are classified as employed or unemployed

unemployment rate

percentage of adults who are in the labor force and thus seeking jobs, but no not have jobs

labor force participation rate

the percentage of adults in the economy who are either employed or unemployed and looking for a job

cyclical unemployment

unemployment that rises during economic downturns and falls when the economy improves

structural unemployment

unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one

frictional unemployment

unemployment that occurs when people take time to find a job

natural rate of unemployment

the unemployment rate that would exist in a growing and healthy economy from the combination of economic, social, and political factors that exist at a given time

full employment

the level of employment reached when there is no cyclical unemployment

equilibrium rate of unemployment

The equilibrium rate of unemployment = frictional + structural unemployment.

limitations to unemployment statistics

exclusion of discouraged workers, part-time workers seeking full-time jobs, informal economy, quality of employment, measurement errors, lagging indicator

hidden unemployment

people who are mislabeled in the categorization of employed, unemployed, or out of the labor force