Unemployment - Unemployment -Those who dont have a job and...

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Unemployment - Those who don’t have a job and who are actively searching for a job in the past 4 weeks. Four types of Unemployment (In brief) : - Frictional : Between jobs and looking for another, or people who are entering/reentering the job market. Short term. - Seasonal : Weather, tourist patterns, etc. Short term and predictable. - Structural : Mismatches between work skill and firm requirements. Skills of workers become obsolete permanently. It may be geographical mismatch (i.e. outsourcing labor). - Cyclical: Unemployment from troths, or recessions (or depressions) in the business cycle. When demand decreases (i.e. spending decreases), everything else follows (Most importantly investment). -Full employment : There is no cyclical unemployment -Natural rate of Unemployment : Unemployment rate when there is no cyclical unemployment (Around 4/4.5%) -Potential output : output level reached when the economy operates at full employment Bureau of Labor Statistics (BLS) survey: worked in previous week? 16 yrs. Older? Serve in military of institutionalized (prison, or hospital)? 1.Work at least an hour for pay? Yes Employed No Temporary layoff? Yes Unemployed No Searched for work in the previous four weeks? Yes Unemployed No Out of the labor force. Labor Force= Employed + Unemployed
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Unemployment - Unemployment -Those who dont have a job and...

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