unit 2

labor force

all employed and unemployed workers who are willing and able to work

unemployed persons

those willing and able to work and who are loooking for work but who did not recieve any wages during the survey week.

employed persons

those who worked in the survey week for wages for an hour or more. also, those in family busiiness who worked 15 or more hours without wages. (16+)

discouraged worker

one who has given up looking for work because the state of the economy is poor.

marginally attached worker

one who has stopped looking for work, but not because they couldn’t find a job or because of the state of the economy.

calculating unemployment rate

#unemployment/labor force x 100

calculating employment rate

#employed/labor force x 100

calculating labor participation rate

#labor force/eligible population

eligable population

non-institutionalized, civilian, and 16 years of age or older

jobless claims

the number of people who file for unemployment benefits in a given week.

natural rate of unemployment

structural + frictional unemployment. not counting cyclical unemployment.

types of unemployment

structural, cyclical, and frictional

part time employment

although there are varying definitions regarding part-time employment, the rule of thumb is someone working less than 40 in a workweek.

underemployment

those working beneath their skill level or work part-time but seek full employment.

temporarily without work

are those people who in previous workweek did not collect pay, but who are expected to return to work in the same place of employment in a short period of time.

unemployment compensation

temporary payments made to those who have lost their job due to economic conditions.

cylical unemployment

unemployment that results from changes in the economy or the business cycle.

structural unemployment

changes in the structure of the labor force make some skills obsolete. the individual does not have transferable skills and/or the jobs may never come back.

frictional unemployment

an individual is temporarily unemployed or between jobs. the individual is qualified and has transferable skills but is not working because the individual is a new entrant to the labor market or has recently quit to find another job.