UNEMPLOYMENT Intro

UNEMPLOYMENT Intro - PRINCIPLES OF MACROECONOMICS...

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PRINCIPLES OF MACROECONOMICS UNEMPLOYMENT Foster
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2 The US unemployment rate hit a 26-year high in 2009 The US Unemployment Rate 9.3%
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3 The US Unemployment Rate
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The U.S. Unemployment Rate, 1948-2008 1948 1960 1970 1980 1990 2000 2008 Year 12% 10 8 6 4 2 Unemployment Rate 4
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5 World Unemployment Rates
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Unemployment Rates Across America, Nov 2009 6
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7
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8 Measuring Unemployment The official US unemployment rate (U-3) produced by Bureau of Labor Statistics (BLS) in the U.S. Department of Labor The Current Population Survey (CPS) is a monthly survey of 60,000 households conducted by the Bureau of Census for the BLS. Based on adults (16 yrs or older)/non- institutional (not in jail or hospital)/civilian population/full or part-time
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9 Measuring Unemployment BLS divides the US population into 3 groups: Employed : paid employees, self-employed, and unpaid workers in a family business Unemployed : people not working who have actively looked for work in the last 4 weeks Not in the labor force : everyone else The labor force is the total number of workers, including the employed and unemployed.
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10 labor force participation rate labor force adult population = 100 x Labor force participation rate : % of the adult (working-age) population that is in the labor force Measuring Unemployment
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11 Unemployment rate : % of the labor force (not adult population) that is unemployed Unemp. Rate # of unemployed labor force = 100 x Measuring Unemployment
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12 Measuring Unemployment Adult population of the U.S. by group January 2010 # of employed 138.3 million # of unemployed 14.8 million Not in labor force 83.7 million Labor force = employed + unemployed = 138.3 + 14.8 = 153.1 million Population* = labor force + not in labor force = 1 5 3 . 1 + 8 3 . 7 = 236.8 million
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100 x (labor force)/(adult population) = 1 0 0 x 1 5 3 . 1 / 2 3 6 . 8 = 64.7% Unemp. Rate = 100 x (unemployed)/(labor force) = 1 0 0 x 1 4 . 8 / 1 5 3 . 1 = 9.7% 13 Measuring Unemployment Adult population of the U.S. by group January 2010 # of employed 138.3 million # of unemployed
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This note was uploaded on 02/28/2011 for the course ECON 011 taught by Professor Yezer during the Spring '07 term at GWU.

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UNEMPLOYMENT Intro - PRINCIPLES OF MACROECONOMICS...

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