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UNEMPLOYMENT AND INFLATION

Unemployment rate useful infor about employment

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unemployment rate = useful infor about employment situation in US but far from an exact measure. How long are ppl typically unemployed? modern US economy , a brief period of time The establishment survey : BLS measures emplyment in economy provides info on total number of persons who are employed and on a company payroll Drawbacks: it doesn’t include self employed ppl/newly opened firms not included/no info about unemployment CPDT: this survey is determined by actual payrolls rather than unverified answers ≠ H survey many discrepancies between both surveys. Types of Unemployment: 1. Frictional unemployment Workers spend some time in job search/firms spend time searching for a person for a job. short term unemplyment form process of matching workers with jobs seasonal unemployment = due to factors such as weather/variations tourism etc.. U.R looks high during some moths seasonally adjusted U.R 2. Structural unemployment Arises from a persistent mismatch between skills atibutes of workers and requirements of jobs 3. Cyclical unemployment Caused by a business cycle recession Full employment = unemployment is structural and frictional
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