11-8 lecture notes

11-8 lecture notes - Unemployment rate can also be used as...

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Unemployment rate can also be used as a deflator, and can be measured as the # of unemployed people divided by the sum of employed and unemployed people (labor force) Labor force= population-under 16-over 65-institutionalized Unemployed numbers are skewed because we count them by counting the number of people who claim unemployment benefits Unemployed people in economics are defined as people actively seeking jobs and willing to work at the going wage rate, yet still do not have a job Seasonal unemployment- when some people are unemployed because of the change in the seasons i.e. ski instructors who in the summer need to find a new job Frictional unemployment- those people who are unemployed because of the friction ins the system because of imperfect mobility of one job to another (laid off in Boston and received job in California but can’t move instantaneously) Structural unemployment- when you are laid off and your skills are outdated from what the market demands of them, doing a job for a number of years and losing
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