UNEMPLOYMENT

Labor Force

The population 15 years old to 6 who contribute to the production of goods and services in the country

Employed

Consists of persons in the labor force who were reported either as at work or with a job or business.
Persons at work are those who did some work even for an hour during reference period.

Unemployed

Includes all persons 15 yrs old to 64 yrs old as of their last birthday:
Without work or had no job/business during basic survey reference period
Currently available for work
Seeking for work

Underemployed

All employed persons who expressed the desire to have an additional hour of work in their present jog or an additional job

Visibly Underemployed

All employed persons who worked less than 40 hrs during the reference week and wanted an additional hours of work

Experienced Unemployed

All unemployed persons who ever worked at any time since the age of 15 for at least one hour either for pay, for profit or without pay on own family farm or business

Not in the Labor Force

Refers to persons 15 years old and over who are neither employed nor unemployed

Discourage Workers

Refers to all persons without job and are not actively seeking for work because they believe there are no available jobs

Labor Force Participation Rate (LFPR)

Ratio of total labor force;
Economically active 15 yrs old and over to the population 15 yrs old and over.

Employment Rate

Proportion of employed persons to the total labor force

Underemployment Rate

Proportion of employed persons wanting more hours of work to total employed persons

Visible Underemployment

Work less than 40 hrs a week

Invisible Underemployment

Work for 40 hrs or more; Still looking for additional job

Unemployment Rate

Proportion of unemployed persons to the total labor force

Frictional Unemployment

Caused by the time it takes worker to reach for a job; Unavoidable if the supply and demand for labor among firms is changing

Structural Unemployment

Basic structural changes like trends towards traditional agriculture to modern industry.
Transformation of rural sector into urban units

Structural Unemployment

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

Structural Unemployment

Exists when there is a permanent decrease in demand and/or technological change results in lay-off because a business needs fewer individuals

Cyclical Unemployment

Changes in the business cycle
Exists when the economy contracts & people laid off because of insufficient spending

Disguised Unemployment

A situation where the productivity of the working force is very low. The number of workers is more than what is optimally desirable .

Disguised Unemployment

If a small plot of land has a maximum capacity to employ six workers but the actual number of workers attached to land exceeds this limit, some of the workers will be disgustedly unemployed

Seasonal Unemployment

A condition that will exist in such productive activities which can be undertaken only during a specific reason

INFLATION RATE (IR)

Annual rate of change
Yearly change in CPI

Demand-pull Inflation

Occurs when consumer suddenly or seasonally demand some products. Allowing suppliers to increase prices to maximize their profits.

Cost-pull Inflation

Occurs due to increasing costs of production on the part of the producers
Increased costs may be results of increased wages, price of raw materials or even an increased desire of the firm to earn more profits

Deflation

Occurs when prices are observably declining over time. Opposite of inflation

Deflation

A decrease in the general price level. A rise in the purchasing power of money.

Disinflation

Refers to the decreasing rate of inflation the general level of prices is increasing at a decreasing rate