Macroeconomics FTC1- Jobs, Employment, and Output

Structural Change

Influence the extent to which workers are searching for jobs. The skills workers need for different jobs are constantly changing. New technologies and new processes will influence the ease with which workers can find the jobs that best match their skill sets.

Unemployment Benefits

Influence the extent to which workers are searching for jobs. When the government offers benefits to the unemployed, it affects their incentive to look for work.

Demographic Change

Influence the extent to which workers search for jobs. An increase or decrease in the working-age population changes the number of new entrants in the labor market looking for work.

How Supply of Labor is influenced

Influenced by taxes on wages and other incomes, unemployment insurance, and workers' overall trade-off between leisure and work.

Frictional Unemployment

Arises from the normal turnover in jobs and workers. When more people enter the labor market or when unemployment benefits increase, there will be more workers searching for jobs. Any dynamic and growing economy will experience frictional unemployment.

Reasons Economic Forces have changed in regards to Gender

Technology and Social Attitudes.

Potential GDP

The level of real GDP that the economy produces when it is at full employment.

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The percent of women in the US Labor Force by 2010.

Supply of Labor

The relationship between the quantity of labor supplied and the real, or inflation-adjusted wage rate when all other influences on worker's plans to work are held constant.

Demographic change, unemployment benefits, and structural change.

The size of the flows of workers is influenced by three main factors:

Seasonal Unemployment

This unemployment arises because of seasonal weather patterns.

Labor Force

Total number of workers in the U.S., both employed and non-employed. Each month, the U.S. Department of Labor's Bureau of Labor Statistics (BLS) conducts a survey of households to estimate the percentage of the U.S. labor force currently at work.

Quantity of Labor Supplied

Will increase as the real wage rate rises and the quantity of labor demanded increases as the real wage rate falls, when all else stays the same.

Discouraged Workers

anyone who would like to work but has given up looking for a job. These people are not counted Anpart of the labor force and do not show up in the official unemployment rate.

US Labor Force Growth Rate since 1960

70 million workers in January 1960 to nearly 154 million workers in 2010.

Involuntary part-time workers

Adults working fewer than 34 hours per week but are looking for full-time work. They have been unable to find full-time work because of unfavorable business conditions. Although these workers have jobs, they are considered underemployed and the economy is not fully using all its labor resources.

Marginally attached workers

Any available and willing adult without a job that looked for work in the recent past but is not making any effort to find a job right now.

Natural Rate of Employment

Covers the flow of workers regularly moving in and out of employment or in and out of the labor force, which means that there is a regular flow of workers searching for jobs.

3 factors the Unemployment Rate does not consider

Discouraged Workers, Marginally Attached Workers, and Involuntary Part-Time Workers

True or False, During a recession, the average duration of unemployment tends to decrease.

False, during a recession the average duration of unemployment tends to increase.

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In 1960, the US participation rate for women was approximately _____ percent.

Full Employment

Occurs when there is no cyclical unemployment, and all unemployment is frictional, structural, or seasonal.

Structural Unemployment

Unemployment that arises when changes in technology or competition change the skills employers require for the available jobs.

Unemployed

When a person is without work in the past four weeks or when they have been laid off and are waiting to be called back to their former positions.

Reaching Potential GDP

When the unemployment rate equals the natural rate of unemployment. At this level of output, there is no cyclical unemployment; therefore, real GDP equals potential GDP

Labor-Force Participation Rate

the percentage of the adult population, aged 16 years and older, that is in the labor force.