15_UnemploymentMeasuring

15_UnemploymentMeasuring - Working and Not Working:...

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Working and Not Working and Not Working: Working: Understanding Understanding Employment and Employment and Unemployment Unemployment Readings: Zagorsky textbook chapter 8
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Why Do You Care? Prof. Robert Hall did research in the early 1980s. He found that Average U.S. Male held 11 jobs over lifetime Average U.S. Female held 10 jobs over lifetime Among professional / white collar workers 60% of the time they lined up a new job before leaving old job. 40% of time these workers did not, because of Unexpected company bankruptcy Layoffs Arguments with boss Misjudgment of labor market conditions
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Why Does Society Care? When workers are unemployed, they, their families and the country as a whole lose. 1. Workers and their families lose wages 2. The country loses the goods or services which could have been produced. 3. The purchasing power of these workers is lost, which leads to unemployment for other workers. 4. Society sees higher crime 5. Workers lose their skills 6. 7. Other costs
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Why Does the Gov. Care? Government leaders have the ability to change the level of unemployment in every country. Gov. can increase the number employed by creating jobs. Gov. can increase the number employed by providing training programs. Gov. can increase the number employed by reducing business taxes and regulations. However, creating jobs, running training programs and reducing taxes are all costly and expanding gov. involvement in the labor market increases government spending and usually results in a budget deficit.
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Why Do Business Managers Care? 1. The Unemployment Rate directly affects business staffing decisions High Unemployment Easy to Hire Low Unemployment Difficult to Hire. 1. Unemployment rate impacts wages being offered. 1. High unemployment times managers must ensure they retain key players and then try to hire exceptional talent to ensure your business is ready for the next economic expansion .
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Fourth Reason Vast majority of consumers have either little or no savings. Among those with savings most of the money is tied up in homes or retirement accounts. This means most people only spend money from the income they currently receive. Since most income comes from working When people are working, business sales increase. When people are not working, business sales fall.
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FABLE
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Fable: Who is Unemployed 1. Some people think the government tracks the unemployed based on the number of people getting unemployment insurance checks or signed up with the “Jobs Office.” It doesn’t. 2. “Un” is a prefix that means “not.” Uninspired Unbelievable Unjust Many people think the Un employed are people who are not working. This is only a small part of the definition.
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Key Ideas Unemployed : Primarily individuals who want work and can not get it. Example:
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This note was uploaded on 04/17/2011 for the course EC 102 taught by Professor Zagorsky during the Spring '08 term at BU.

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15_UnemploymentMeasuring - Working and Not Working:...

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