Employment and Unemployment

These flashcards cover key terms related to employment and unemployment, including definitions and relevant economic concepts.

Unemployment

The state of being without a paid job while actively seeking work.

Labor Force

The sum of employed and unemployed individuals in an economy.

Labor Force Participation Rate (LFPR)

The percentage of the potential working population that is part of the labor force.

Employment-Population Ratio (EPR)

The ratio of the number of employed individuals to the potential working population.

Unemployment Rate (UR)

The percentage of the labor force that is unemployed.

Frictional Unemployment

Temporary unemployment resulting from the process of matching workers with jobs.

Structural Unemployment

Long-term unemployment arising from a mismatch between skills and job requirements.

Cyclical Unemployment

Unemployment that results from economic downturns and the business cycle.

Labor Demand

The total quantity of labor that firms are willing to hire at a given wage.

Labor Supply

The total quantity of labor that workers are willing to provide at a given wage.

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded.

Marginal Product of Labor (MPL)

The additional output produced by one more unit of labor.

Value of the Marginal Product of Labor (VMPL)

The additional revenue generated by hiring one more worker.

Wage Rigidity

The phenomenon where wages do not adjust quickly to changes in labor market conditions.

Minimum Wage Laws

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

Collective Bargaining

Negotiation between employers and a group of employees on wages and working conditions.