chapter14.2notes: unemployment

Chapter14.2Notes:Unemployment

I. Measuring unemployment

A. To be considered unemployment, you must meet the following:

1. > 18 yrs. old

2. Available & looking for work within the past month.

3. Not working or worked less than 1hr

within the past week.

B. Bureau of Census conducts the unemployment survey based on above criteria. They pass the results to the Bureau of labor and they determine….

C.Unemployment Rate =

#unemployed x100

# in labor force

1. Labor force = employed + unemployed

2. Remember to follow rules regarding

who is unemployed

II. Kinds of Unemployment

A. Structural Unemployment = job no longer exists in our society

B. Cyclical Unemployment = unemployed because

of a downturn in the business cycle (ie.

recession)

16 teachers, others to get laid off in SeattleSchool Board takes action to balance budgetSeattle Public Schools plans to notify 16 teachers and other school employees this week that they will be laid off at the end of the

schoolyear.

C. Seasonal Unemployment = season or weather related unemployment

D. Technological Unemployment =

unemployed because machinery / automation has replaced you

E. Frictional Unemployment = workers who quit, laid off, or fired and looking for another job 1. Use this option if A,B,C, or D above do not apply

III. Full Employment Unemployment RateA. Definition = Lowest possible

unemployment rate where economy is being efficient (usually 5%)

B. Why can’t we have 0% unemployment?Because even if the economy has

enough jobs for everyone, someone will always be… 1. In the process of looking for a new job.

• http://www.bls.gov/cps/home.htm = unemployment rate

• http://www.bls.gov/eag/eag.ca_losangeles_msa.htm = unemployment rate - California