poverty unemployment pt 1

What is the unemployment rate?

The unemployment rate is the measure of unemployment expressed as the number of unemployed individuals divided by the total number of persons in the labor force.

What organization conducts monthly surveys to measure unemployment in the U.S.?

The Bureau of Labor Statistics conducts monthly surveys of about 50,000 households in all 50 states.

Who is considered unemployed according to the Bureau of Labor Statistics?

Individuals who made an effort to find work during the past month but worked less than 1 paid hour that week, or those who worked for pay for less than 15 hours a week.

What are the limitations of the unemployment rate?

The unemployment rate does not include those who have stopped looking for work and counts individuals as employed even if they hold part-time jobs.

What is frictional unemployment?

Frictional unemployment is caused by workers who are temporarily unemployed while transitioning between jobs.

What is structural unemployment?

Structural unemployment occurs when a fundamental change in the economy reduces the demand for certain workers and their skills.

What is cyclical unemployment?

Cyclical unemployment is directly related to the economic cycle, such as layoffs during a recession.

What is seasonal unemployment?

Seasonal unemployment results from changes in the weather or seasonal demands, such as fewer workers needed in winter or after holiday seasons.

What causes technological unemployment?

Technological unemployment is caused when workers with less skills, talent, or education are replaced by automation or technology.

What does full employment mean?

Full employment does not mean zero unemployment; it refers to the lowest unemployment rate that an economy can sustain while still growing.

What is inflation?

Inflation is a special kind of economic instability that deals with changes in the level of prices, resulting in a decline in purchasing power.

How is inflation measured?

Inflation is measured by comparing the price of a basket of goods at one point in time to the price of the same basket at another point in time.

What is creeping inflation?

Creeping inflation is characterized by a rise in prices of 1-3% a year.

What is galloping inflation?

Galloping inflation is more intense inflation, ranging from 100-300%.

What is hyperinflation?

Hyperinflation is an extremely high and typically accelerating inflation rate, often exceeding 300%.

What is the role of Census workers in measuring unemployment?

Census workers look for unemployed individuals as part of the monthly surveys conducted by the Bureau of Labor Statistics.

What happens to workers during a recession?

During a recession, workers may experience cyclical unemployment as companies lay off employees due to decreased demand.

What is the impact of seasonal changes on employment?

Seasonal changes can lead to seasonal unemployment, where certain jobs are only available during specific times of the year.

What is the significance of the unemployment rate in economic analysis?

The unemployment rate is a key indicator of economic health, reflecting the efficiency of the labor market and overall economic conditions.

What are the consequences of structural unemployment?

Structural unemployment can lead to long-term joblessness for affected workers as their skills may no longer be in demand.

How does inflation affect purchasing power?

Inflation leads to a rise in prices, which decreases the purchasing power of money.

What is the relationship between inflation and economic output?

Inflation is often associated with changes in the level of employment and output within an economy.