Unemployment in Economics

Flashcards covering essential vocabulary related to unemployment as discussed in the lecture notes.

Unemployment

The state of being without a job despite actively searching for one.

Natural Rate of Unemployment

The amount of unemployment that the economy normally experiences.

Cyclical Unemployment

Unemployment caused by year-to-year fluctuations around the natural rate.

Labour Force

The total number of employed and unemployed individuals actively seeking work.

Labour Force Participation Rate (LFPR)

The percentage of the adult population that is in the labour force.

Unemployment Rate

The percentage of the labour force that is unemployed.

Frictional Unemployment

Unemployment due to the time it takes for jobs to be matched with job seekers.

Structural Unemployment

Unemployment resulting from wages not adjusting to bring supply and demand into equilibrium.

Discouraged Workers

Individuals who have stopped looking for work because they believe no jobs are available.

Marginally Attached Workers

Individuals not currently in the labor force who want to work and have looked for work recently.