•
Unemployment
o
Definitions:
The
Labor Force
is the number of people who have jobs or who are
actively looking for jobs
The
Employment Rate
is the number of people who have jobs divided by
the Labor Force
The
Unemployment Rate
is one minus the Employment Rate; alternatively,
it’s the number of people who don’t have jobs
and are looking for jobs
divided by the Labor Force
o
Important Points
You can’t be unemployed if you’re not looking for a job!
If we didn’t have this requirement, we’d be forced to list children, senior
citizens, students, the heavily disabled, etc. as unemployed.
Clearly this
would be ridiculous.
Unemployment also misses several major issues (underemployment,
overqualification, discouragement, etc).
•
Keep this in mind when people fixate on the unemployment rate as
a huge issue!
•
To repeat: if you’re not looking for a job, you’re not unemployed!
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- Winter '08
- Rossana
- Macroeconomics, Unemployment
-
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