Principles of Economics- Mankiw (5th) 563

Principles of Economics- Mankiw (5th) 563 - Once the BLS...

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CHAPTER 26 UNEMPLOYMENT AND ITS NATURAL RATE 581 length of the average workweek, and the duration of unemployment. These data come from a regular survey of about 60,000 households, called the Current Popu- lation Survey. Based on the answers to survey questions, the BLS places each adult (aged six- teen and older) in each surveyed household into one of three categories: ± Employed ± Unemployed ± Not in the labor force A person is considered employed if he or she spent most of the previous week working at a paid job. A person is unemployed if he or she is on temporary layoff, is looking for a job, or is waiting for the start date of a new job. A person who fits neither of the first two categories, such as a full-time student, homemaker, or re- tiree, is not in the labor force. Figure 26-1 shows this breakdown for 1998.
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Unformatted text preview: Once the BLS has placed all the individuals covered by the survey in a cate-gory, it computes various statistics to summarize the state of the labor market. The BLS defines the labor force as the sum of the employed and the unemployed: Labor force Number employed number of unemployed Adult population (205.2 million) Labor force (137.7 million) Employed (131.5 million) Not in labor force (67.5 million) Unemployed (6.2 million) Figure 26-1 T HE B REAKDOWN OF THE P OPULATION IN 1998. The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force. S OURCE: Bureau of Labor Statistics. labor force the total number of workers, including both the employed and the unemployed...
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