macro 6

Unemployment

Recognized as a major macroeconomic issue, referring to individuals without jobs actively seeking work.

Labor force

Comprises individuals aged 16 and above who are employed or looking for work.

Labor force participation rate (LFPR)

Percentage of the population in the labor force, calculated as LF divided by the population.

Unemployment rate

Percentage of unemployed individuals in the labor force, calculated as the number of unemployed divided by the labor force.

Seasonal unemployment

Caused by seasonal changes in employment, such as in agriculture or tourism.

Frictional unemployment

Brief unemployment periods when individuals transition between jobs or enter the labor market.

Structural unemployment

Arises from a mismatch between job seekers' skills and available job requirements, often due to technological changes.

Cyclical unemployment

Results from economic downturns, leading to excess workers for available jobs.

Discouraged Workers

Former job seekers who have stopped looking for work and are not included in unemployment statistics.

Underemployment

People seeking full-time work but only finding part-time or lower-skilled jobs, not fully captured in unemployment rates.