lecture 12 unemployment
TRANSCRIPT
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Human
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(1+r)n
insurance limited liability corporations
ideas technologymethods
Key Termslabor forceunemployment ratelabor-force participation ratenatural rate of unemploymentcyclical unemploymentdiscouraged workersfrictional unemployment
structural unemploymentjob searchunemployment insuranceunioncollective bargainingstrikeefficiency wages
Employedpaid employees
work in own businessunpaid workers in family business
full-time and part-timejobs but temporary absence
Unemployednot employed
availabletried to find a job in the last four
weekswaiting to be recalled from layoff
Unemployed 7.7 million3%
Employed 152.3 million60%
Not in Labor Force 94 million37%
Adult Population
millions%
Population %
Adults% Labor Force
Population 320 100%
Age under 16 66 20%
Age 16+ 254 80% 100%
Not in Labor Force 94 30% 37%
In Labor Force 160 50% 63% 100%
Employed 152.3 47.6% 60% 95.2%
Unemployed 7.7 2.4% 3% 4.8%
Bureau of Labor Statistics - Two Surveys
The Current Population Survey (CPS) "household survey" Sample of 60,000 households.
The Current Employment Statistics Survey (CES): "payroll survey" sample of 160,000 businesses and government agencies that represent 400,000 individual employees.
Who Measures Unemployment?
U1: the percentage of labor force unemployed for 15 weeks or longer.
U2: the percentage of labor force who lost jobs or completed temporary work.
U3: the official unemployment rate that occurs when people are without jobs and they have actively looked for work within the past four weeks.
U4: the individuals described in U3 plus "discouraged workers," those who have stopped looking for work because current economic conditions make them think that no work is available for them.
U5: the individuals described in U4 plus other "marginally attached workers," "loosely attached workers," or those who "would like" and are able to work, but have not looked for work recently.
U6: the individuals described in U5 plus part-time workers who want to work full-time, but cannot due to economic reasons, primarily underemployment.
Six Measures of Unemployment
Labor-Force Participation Rate
The percentage of the adult population (15+)
that is in the labor force
Civilian labor force by sex1948-2015 annual averages
1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015Year
0
20,000
40,000
60,000
80,000
Num
ber i
n th
e civ
ilian
labo
r for
ce (i
n th
ousa
nds)
1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015Year
0
20
40
60
Shar
e of
the
civilia
n la
bor f
orce
(%)
Select Year Range1948 to 2015
WomenMen
Hover over chart to view data.Adjust year range to changedata display.
Notes: Includes persons in thecivilian noninstitutional populationthat are employed or activelylooking for work. Based onpersons 16 years of age and older.The comparability of historicaldata has been affected at varioustimes by methodological and otherchanges in the Current PopulationSurvey.
Source: 1948-2015 annualaverages, Current PopulationSurvey, U.S. Bureau of LaborStatistics
Graph by the Women's Bureau, U..
Men
Women
Natural Rate of Unemployment
The normal rate of unemployment around
which the unemployment rate fluctuates