First nd the number of unemployed labor force less

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ary 5, 2014 31 / 40 Unemployment Unemployment Rates (Figure 5.15) Figure : National Unemployment Rates Ryan W. Herzog (GU) Labor Market February 5, 2014 32 / 40 Unemployment Local Unemployment Rates (Figure 5.16) Figure : Local Unemployment Rates Ryan W. Herzog (GU) Labor Market February 5, 2014 33 / 40 Unemployment Labor Force (Figure 5.17) Figure : Labor Force Participation Rates Ryan W. Herzog (GU) Labor Market February 5, 2014 34 / 40 Unemployment Unemployment Duration (Figure 5.18) Figure : Local Unemployment Rates Ryan W. Herzog (GU) Labor Market February 5, 2014 35 / 40 Types Types of Unemployment There are three main types of unemployment: 1 2 3 Frictional - is short-term unemployment associated with the process of matching workers with jobs. Structural - is long-term chronic unemployment that exists even when the economy is producing at a normal rate. Several factors contribute to structural unemployment, including lack of skills, language barriers, or discrimination. Cyclical - is the extra unemployment that occurs during periods of recessions. Since frictional and cyclical unemployment is short lived it is fairly low cost. In the long run, frictional unemployment will improve productivity as workers are more appropriately matched into jobs. Structural unemployment can be very cost (reeducating workers and unemployment compensation). There is also a large psychological cost. Ryan W. Herzog (GU) Labor Market February 5, 2014 36 / 40 Views Two Views of the Labor Market One of the goals of macroeconomics is to be able to explain the relationship between output, unemployment, and inflation. The relationship between output and labor is tricky to define. As firms implement new technologies they will hire more workers and increase output. This suggest that changes in labor demand cause output to increase. Conversely an increase in demand for goods and services will increase output prices causing labor demand to increase, which suggest output changes labor demand. The more concerning question...
View Full Document

This document was uploaded on 03/18/2014 for the course ECON 202 at Gonzaga.

Ask a homework question - tutors are online