Econ 104 Labor Force Equations

These flashcards cover key concepts and definitions related to labor force measurements and unemployment rates.

Labor Force

The total number of employed and unemployed individuals.

U3 Rate

The 'headline' unemployment rate; calculated as Unemployed divided by Labor Force.

Labor Force Participation Rate

The percentage of the working-age population (16+) that is part of the labor force.

Prime-Age Labor Force Participation Rate

The percentage of the prime-age population (ages 25-54) that is part of the labor force.

Marginally Attached Workers

Individuals who are not in the labor force but want and are available for work and have looked for a job in the past 12 months.

U6 Rate

A broader measure of unemployment that includes the unemployed, underemployed, and marginally attached workers.

Total Unemployed

The sum of structurally unemployed, frictionally unemployed, and cyclically unemployed individuals.

Natural Rate of Unemployment

The long-term rate of unemployment determined by structural and frictional factors.