econ chapter ``11: unemployment

working age population

those age 16 or older who are not in the military or institutionailized

employed

working age people who are working

unemployed

working age people without jobs who are trying to get jobs

labor force

the employed plus the unemployed

not in the labor force

those in the working age population who are neither employed nor unemployed

labor force participation rate

the percentage of the working age population that is either employed or unemployed

labor force participation rate formula

unemployment rate

the percentage of the labor force that is unemployed

unemployment rate formula

equilibrium unemployment rate

the long run unemployment rate to which the economy tends to return

long term unemployed

people who have been unemployed for 6 consecutive months or longer

marginally attached

someone who wants a job and who has looked for a job within the past year, but who isn’t counted as unemployed because they aren’t currently searching for work

underemployed

some who has some work but wants more hours, or whose job isn’t adequately using their skills

involuntarily part time

someone who wants full time work and is working part time because they haven’t found a full time job

frictional unemployment

unemployment due to the time it takes for employers to search for workers and for workers to search for jobs

structural unemployment

unemployment that occurs because wages don’t fall to bring labor demand and supply into equilibrium

cyclical unemployment

unemployment that is due to a temporary downturn in the economy

efficiency wage

a higher wage paid to encourage greater worker productivity

hysteresis

when a period of high unemployment leads to a higher equilibrium unemployment rate