F1_UnemploymentMeasuring_Student

F1_UnemploymentMeasuring_Student - Measuring and...

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Measuring and Classifying Measuring and Classifying Unemployment Unemployment
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Why Do You Care? Prof. Robert Hall did research in the early 1980s. He found that Average U.S. Male held 11 jobs over lifetime Average U.S. Female held … jobs over lifetime Among professional / white collar workers 60% of the time they lined up a new job before leaving old job. 40% of time these workers did not, because of Unexpected company bankruptcy …. Arguments with boss Misjudgment of labor market conditions
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Why Do You Care? Many families and individuals have relatively low amounts of savings. Many families and individuals live from paycheck to paycheck. What happens to these people when they lose their job?
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Why Does the Gov. Care? Government leaders have the ability to change the level of unemployment in every country. Gov. can increase the number employed by creating jobs. Gov. can increase the number employed by providing ……………. Gov. can increase the number employed by reducing business taxes and regulations. However, creating jobs, running training programs and reducing taxes are all costly and expanding gov. involvement in the labor market increases the current budget deficit.
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Why Does Society Care? When workers are unemployed, they, their families and the country as a whole lose. 1. Workers and their families lose wages 2. The country loses the goods or services which could have been produced. 3. The purchasing power of these workers is lost, which leads to unemployment for other workers. 4. Society sees higher crime 5. ………. 6. 7. Other costs
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Two Common Misconceptions 1. Many people think the government tracks the unemployed based on the number of people getting unemployment insurance checks. It doesn’t. 2. “Un” is a prefix that means “not.” Uninspired Unbelievable Unjust Many people think the Un employed are people who are not working. This is only a small part of the definition.
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Key Idea #1 Unemployed : Primarily individuals who want work and can not get it. Example: Steel mill closure A country’s output is produced using land, labor and capital. Unused physical resources can always be used another time but unused labor is lost forever.
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Key Idea #2 Key Idea #1 is simple concept BUT the actual way the government measures the issue is complex. This complexity sometimes leads to results which does not match the simple definition and sometimes leads to changes in the data that do not match what we expect.
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Related problems Under employed : Want more work at current wage but can not get it. Example: ………….
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F1_UnemploymentMeasuring_Student - Measuring and...

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