ECO 120 - Employment/Unemployment

Labor Force Participation Rate =

(Labor Force/Population Aged 16+) x 100

Unemployment

the number of people who are actively looking for work, but aren't currently employed.

The unemployment rate can be __________ by NOT including discouraged workers, marginally attached workers, and underemployment.

understated

Unemployment Rate =

(Number of Unemployed Workers/Labor Force) x 100

Labor Force

equal to the sum of employment and unemployment

Discouraged Workers

nonworking people who are capable of work but have given up looking for a job given the state of the job market

The unemployment rate can ____________ the true level of unemployment while people who are easily employed look for the right job

overstate

Employment

the number of people currently employed in the economy, either full time or part time.

Underemployment

the number of people who work part time because they cannot find fulltime jobs

Labor Force Participation Rate

the percentage of the population, aged 16 or older, that is in the labor force

Unemployment Rate

the percentage of the total number of people in the labor force who are unemployed.

Marginally Attached Workers

would like to be employed and have looked for a job in the recent past but are not currently looking for work