Unemployment

Labor force: the total number of workers, including both the employed and the unemployed.

Unemployment rate: the percentage of the labor force that is unemployed.

Labor-force participation rate: the percentage of the adult population that is in the labor force.

Discouraged workers: individuals who would like to work but have given up looking for a job.

Frictional unemployment: unemployment that results because it takes time for workers to search for the jobs that are a best fit for them.

Structural unemployment: unemployment that results because of a mismatch between the skills needed for the job opening and the skills of the unemployed worker.

Cyclical unemployment: unemployment that results from recession; there are simply not enough jobs available for everyone who wants them.

Natural rate of unemployment: the normal rate of unemployment that typically exists in the economy.  It is made up of Frictional + Structural unemployment.

Union: a worker association that bargains with employers over wages and working conditions.

Efficiency wages: above-equilibrium wages paid by firms in order to increase worker productivity.