Macroeconomics: Unemployment and Employment

This set of flashcards covers key concepts related to unemployment and employment from the macroeconomics lecture.

Unemployment Rate

The percentage of the labor force that is unemployed.

Labor Force

The sum of employed and unemployed workers.

Employment-to-Population Ratio

The percentage of the working-age population who have jobs.

Labor Force Participation Rate

The percentage of the working-age population who are members of the labor force.

Frictional Unemployment

Unemployment that arises from normal labor market turnover.

Structural Unemployment

Unemployment created by changes in technology and foreign competition that change skills or locations of jobs.

Cyclical Unemployment

Higher than normal unemployment at a business cycle trough and lower than normal unemployment at a business cycle peak.

Natural Unemployment

Unemployment that arises from frictions and structural change with no cyclical unemployment.

Full Employment

The situation in which the unemployment rate equals the natural unemployment rate.

Trends in Labor Market Indicators

Labor market indicators that include the unemployment rate, employment-to-population ratio, and labor force participation rate.