Low Unemployment

unemployment rate formula

umeployed / labour force

what makes up the labour force

employed + unemployed

unemployment

people of working age who are actively looking for a job but are not employed

underemployment 

people of working age with part time jobs or jobs that do not make full use of their skills and education 

structural unemployment

1. change in demand for particular labour skills 

2. change in geographical location 

3. labour market rigidities 

what are labour market rigidities 

market unable to go back to equilibrium like minimum wages, government legislations, unions etc. 

seasonal unemployment

certain people becoming unemployed at the same time each year

• college students graduating

• skii instructors 

cyclical unemployment

when weak demand for goods and services lead to a much larger decrease in demand in the entire economy

• stuck in recessionary gap (unemployment is higher than natural rate)

hidden unemployment  

discouraged workers that stop searching after being unsuccessful at finding work