1 Reading Assignment: Chapter 18, 18.1 & 18.3 only After studying this topic, you will be able to: 1 Define the unemployment rate and other labor market indicators. 2 Describe the types of unemployment, define full employment, and explain the link between unemployment and real GDP. Exclude 18.2 on p.471-476
2 18.1 labor market indicators Working-age population is the total number of people aged 16 years and over who are not in a jail, hospital, or some other form of institutional care or in the Armed Forces. The working-age population is divided into those in the labor force and those not in the labor force. Population Survey Criteria The survey counts as employed all persons who, during the week before the survey: 1. Worked at least 1 hour in a paid job or 15 hours unpaid in family business. 2. Were not working but who had jobs from which they were temporarily absent. Labor force is the number of people employed plus the number unemployed. = Employed + Unemployed
3 18.1 labor market indicators The survey counts as unemployed all persons who, during the week before the survey: 1. Had no employment 2. Were available for work, and either: 1. Had made efforts to find employment during the previous four weeks, or 2. Were waiting to be recalled to a job from which they had been laid off. Figure 22.1 shows population labor force categories of the USA. The figure shows the data for August 2011.