Guide to Reading Section 3: Unemployment

These flashcards cover key vocabulary and concepts related to unemployment as discussed in the reading notes.

Civilian Labor Force

The sum of all persons age 16 and above who are either employed or actively seeking employment, excluding military members and those confined in jail or residing in mental health facilities.

Unemployment Rate

The percentage of people in the civilian labor force who are classified as unemployed.

Frictional Unemployment

A type of unemployment that occurs when workers are temporarily between jobs, often due to voluntarily leaving one job to find another.

Structural Unemployment

Unemployment caused by fundamental changes in the economy that reduce the demand for certain workers' skills.

Outsourcing

The practice of hiring outside firms to perform tasks that would otherwise be done in-house, typically to reduce costs.

Technological Unemployment

Unemployment resulting from technological advancements that render certain skills or jobs obsolete.

Cyclical Unemployment

Unemployment directly related to the economic cycle, typically increasing during recessions as demand for goods and services decreases.

Seasonal Unemployment

Unemployment resulting from seasonal changes in demand for certain jobs during specific times of the year.

GDP Gap

The difference between the actual Gross Domestic Product (GDP) and the potential GDP that could be produced if all resources were fully employed.

Discomfort Index

Another name for the misery index, representing the sum of inflation and unemployment rates.

Underemployment

A situation where individuals are employed but not in positions that utilize their skills fully, or they work fewer hours than they desire.

Labor Force Dropouts

Individuals who are out of work and not counted in the unemployment statistics because they are not actively seeking employment.