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Labor Force
Total number of workers
Equation of the Labor Force
Labor\ Force=Number\ Employed
+Number\ Unemployed
Unemployment Rate
Percentage of the labor force that is unemployed
Equation of Unemployment Rate
Unemployment\ rate = \frac{Number\ unemployed}{Labor\ force}*100
Labor-force participation rate
Percentage of the adult population in the labor force
Equation of the labor-force-participation rate
Labor\ force\ participation\ rate =\frac{Labor\ force}{Adult\ population}*100
Natural Rate of Unemployment
Normal rate of unemployment around which the unemployment rate fluctuates
Cyclical Unemployment
Deviation of unemployment from natural rate
Frictional Unemployment
Unemployment resulting from the process of matching workers and jobs
Structural Unemployment
Unemployment resulting from the number of jobs available being insufficient to provide a job to all people wanting jobs.
Job Search
Process of matching workers with appropriate jobs given tastes and skills
Sectoral Shifts
Changes in the composition of demand among industries or regions; causes temporary unemployment
Unemployment Insurance
Government program that partially protects workers’ incomes when they become unemployed
Collective bargaining
Process by which unions and firms agree on terms of employment
Strike
Union-organized withdrawal of labor from a firm
Efficiency Wages
Above-equilibrium wages paid by firms to increase worker productivity
