8 in august 2007 657 in june 2009 unemployment rate

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Labor Force Participation Rate – 65.8% in August 2007 65.7% in June 2009 Unemployment rate = Number of people unemployed x 100 Labor force Labor force participation rate = Working-age population x 100 Labor force
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LABOR MARKET INDICATORS Worker Classifications Discouraged Workers Has not made an effort to find a job in last 4 weeks Not included in unemployment or labor force rates Full-time Workers Work 35+ hours a week Part-time Workers Involuntary (part-time for economic reasons) Desire a full-time job Voluntary Choose to work part-time Aggregate Hours Total number of hours worked by all people in a year
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LABOR MARKET INDICATORS Part-time Workers Part-time jobs remain STEADY across the business cycle Involuntary Part-time workers FOLLOW the business cycle
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Alternative Measures of Unemployment
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Part-Time Workers: old verse new method
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LABOR MARKET INDICATORS Aggregate Hours Between 1967 and 2007 96% - Increase in number of people working (almost double) 75% - Increase in aggregate hours Due to shorter work weeks – People work less hours each week on average Fluctuations Follow Business Cycle
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Labor Market in the Great Depression 1929-1939: The Great Depression 1933: The worst year real GDP fell 30% 1in 4 people could not find work.
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LABOR MARKET TRENDS Unemployment 5.9% - Average Unemployment between 1967 and 2007 3.9% in 60’s: Vietnam War and spending due to social programs Low in Late 90’s: Technology sector High in 70’s & 80’s: World oil price (1982 recession – almost 10%) Increases in recessions and Decreases in expansions
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Unemployment Rate
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LABOR MARKET TRENDS Participation Rate WOMEN College education Technological change in the home Technological change in the workplace MEN Retired early Remained in full-time education
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Unemployment Around the World All of the countries with higher unemployment rates than the U.S. rate also have higher unemployment benefits and more regulated labor markets.
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Christopher Reinemann
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