Chapter 15 Unemployment

Chapter 15 Unemployment - Chapter 15 Unemployment...

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Chapter 15 Unemployment Identifying Unemployment How is Unemployment measured? -Measured by Bureau of Labor Statistics(BLS) which is part of the Department of Labor. -Data on unemployment is produced every month (includes unemployment rate, length of aver- age workweek, duration of unemployment) -Data comes from survey of about 60000 households -Survey is called Current Population survey The population is dived in to 3 categories: 1. Employed - paid employees, own business, unpaid family business, (temporal absence counts too) 2. Unemployed - people who have tried to find a job for the previous four weeks, and those wait- ing to be recalled to a job from which they had been laid off. 3. Not in Labor force - fit neither of the first two(full time student, homemaker, retiree) Computations: Labor force is the total number of workers, including the employed and the unemployed Labor force= Number of employed + Number of unemployed Unemployment rate is the % of the labor force that is unemployed Unemployment rate= Number of unemployed / Labor force x 100 Labor force participation rate is the % of the adult population that is in the labor force Labor force participation rate= Labor force/ Adult population x 100 Trends of US labor participation rate -Women ages 20 and older have lower rates of labor force participation than men, but once in labor force, unemployment rate is similar. -Blacks ages 20 and older have similar rates of labor force participation as whites, but they have much higher rates of unemployment -Teenagers have lower rates of labor force participation and much higher rates of unemployment than older workers. Natural rate of unemployment- the normal rate of unemployment around which the unemploy-
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This note was uploaded on 07/03/2010 for the course ECON 201 taught by Professor Salehie during the Spring '08 term at University of Washington.

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Chapter 15 Unemployment - Chapter 15 Unemployment...

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