Ssozi Macroeconomics Chapter 9: Employment and Unemployment

These flashcards cover key vocabulary and concepts related to employment and unemployment as discussed in Chapter 9 of Ssozi Macroeconomics.

Potential adult labor force

Includes the civilian non-institutional population aged 16 years and older.

Employed individual

One who has a full-time or part-time paid job.

Underemployed workers

Workers who are counted as employed but wish to work more hours.

Unemployed worker

A worker who does not have a job, has been actively looking for one in the prior 4 weeks, and is available for work.

Labor force participation rate

The percentage of the working-age population that is either employed or actively looking for work.

Discouraged workers

Workers who are unemployed but are not actively looking for jobs.

Natural rate of unemployment

The long-run average unemployment rate that occurs when the economy is at full employment.

Cyclical unemployment

Unemployment that occurs due to economic downturns or recessions.

Frictional unemployment

Unemployment that arises from the process of matching workers with jobs.

Structural unemployment

Unemployment that occurs when there is a mismatch between the skills of workers and the needs of employers.

Wage rigidity

A situation where wages do not adjust downward easily to clear the labor market.

Collective bargaining

The process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions.

Efficiency wages

Higher-than-market wages that firms pay to increase productivity and reduce turnover.

Minimum wage law

Legislation that sets the lowest legal wage that can be paid to workers.

Labor demand curve

A graphical representation of the relationship between the quantity of labor demanded and the wage rate.

Labor supply curve

A graphical representation of the relationship between the quantity of labor supplied and the wage rate.