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07_Unemployment

07_Unemployment - (Un)Employment 2 Content 1 Definition of...

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(UN)EMPLOYMENT Intro to Macro (ECON 0110) Torsten Jochem (Un)Employment 2 b Content b 1. Definition of Unemployment b 2. Some Costs of Unemployment . Types of Unemployment b 3. Types of Unemployment s F rictional Unemployment s S tructural Unemployment s C yclical Unemployment s S easonal Unemployment s N atural (Rate of) Unemployment b 4. Issues in Measuring Unemployment (Un)Employment 3 b 1. Definition of Unemployment b (i) Civilian Non-Institutional Population (CNP) s All physical capable people above 16, without: . ilitary personnel (“Civilian”) 1. Military personnel (“Civilian”) 2. Institutionalized people, i.e. prisons, hospitals, … (“Non-Institutional”) s CNP = potential labor force b 1. Definition of Unemployment b (ii) Employed (E) s Everyone who has a paid job or unpaid job of more than 15 hours in family business; people with 2 jobs are counted once. (Un)Employment b (iii) Unemployed (U) s Everyone who is actively searching for a job (i.e. did so within the last 4 weeks). b (iv) Not in the labor force (N) s In CNP, but not employed nor unemployed, e.g. retirees, students b (v) Civilian Labor force (LF = E + U) s LF ignores military
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(Un)Employment 5 b 1. Definition of Unemployment b Unemployment Rate (UR) s Number of unemployed as % of labor force s UR = U/LF *100 b Employment Rate (ER) s Number of employed as % of labor force s ER = E/LF * 100 b Labor Force Participation Rate (LFPR) s LFPR = LF/CNP * 100 (Un)Employment 6 b Example b U.S. population (2000): 272.8 mill people s Under 16 years + military + institutionalized: 64 mill s Employed 135.2 mill nemployed .7 mill s Unemployed 5.7 mill s Not in labor force 67.9 mill b CNP = E + U + N = 135.2 + 5.7 + 67.9 = 208.8 mill. b LF = E + U = 135.2 mill + 5.7 mill = 140.7 mill. b
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07_Unemployment - (Un)Employment 2 Content 1 Definition of...

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