chapter6 - Unemployment CHAPTER6 TheLaborForce

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 6 Unemployment
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The Labor Force The  labor force  includes all persons over age sixteen  who are either working for pay or actively seeking  paid employment. People who are not employed or are not actively  seeking work are not considered part of the labor  force.
Background image of page 2
The Labor Force The  labor-force participation rate  is the percentage  of the population working or seeking employment. People who are neither employed nor actively  seeking work are called  nonparticipants .
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The Labor Force, 2006
Background image of page 4
A Growing Labor Force
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Growth of Production Possibilities Production is limited by two factors: The availability of factors of production. Technological know-how. A growing labor force creates long-run economic  growth. Institutional Constraints: Restrictions on  use of resources and technology. The size of labor force limited by participation rates and social  regulation.
Background image of page 6
Unemployment To make full use of available production capacity, the  labor force must be fully employed. Unemployment   is the inability of labor-force  participants to find jobs. Effect of unemployment on output:  Okun’s Law:  1%  more unemployment results in 2 percent less output
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Measuring Unemployment U.S. Census Bureau surveys about 60,000 households  a month to determine how many people are actually  unemployed. A person is considered unemployed if he or she is not  employed and is actively seeking a job.
Background image of page 8
The Unemployment Rate The  unemployment rate  is the proportion of the  labor force that is unemployed.
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Unemployment Isn’t Experienced Equally by  Race or Sex
Background image of page 10
Unemployment Isn’t Experienced Equally by  Education
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 32

chapter6 - Unemployment CHAPTER6 TheLaborForce

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online