Employment, Unemployment, and Macroeconomics

These flashcards cover key terms and concepts related to employment, unemployment, and macroeconomic theories from the lecture notes.

Bureau of Labor Statistics (BLS)

The US government agency that compiles and publishes employment and unemployment statistics.

Civilian non-institutional population

Persons 16 years or older who do not live in institutions and are not on active duty in the Armed Forces.

Employed person

A person who did any work for pay or profit during the week before they are surveyed by the BLS.

Unemployed person

A person who is not employed but is actively seeking a job and is immediately available for work.

Labor force

The sum of employed and unemployed individuals.

Unemployment rate

Calculated as the number of unemployed persons divided by the labor force, multiplied by 100.

Marginally attached workers

Not in the labor force but available for work, wanting to work, and have searched for a job but not anymore.

Discouraged workers

Marginally attached workers who believe there are no jobs available for them.

Underemployment

Working fewer hours than desired and/or at a job that does not utilize one’s skills.

Frictional unemployment

Unemployment that arises as people are in transition between jobs.

Structural unemployment

Unemployment that arises when people's skills or location do not match the needs of employers.

Cyclical unemployment

Unemployment resulting from a decline in aggregate demand.

Recession

A period where GDP falls for two consecutive calendar quarters.

Classical Theory of Unemployment

A theory that discusses market regulations, unions, and public safety nets affecting unemployment.

Imperfect Labor Markets

Markets where psychological factors and regulations prevent quick wage adjustments in response to surpluses.

Efficiency wage theory

The idea that employers may pay higher wages to increase worker motivation.

Aggregate demand

The total demand for goods and services within a particular market.