AP Macroeconomics Module 12 - The Meaning and Calculation of Unemployment
Unemployment Rate (extra note)
- The unemployment rate will never drop to 0 -The ups and downs of the unemployment rate mostly reflect economic changes that have a significant impact on peoples lives
How to calculate labor force participation rate
Labor Force/Population Age 16 or older x 100
How to calculate unemployment rate
Number of unemployed workers/Labor Force x 100
Discouraged Workers
Individuals who want to work but aren't currently searching for a job
Employed
People currently holding a job in the economy
Unemployed
People who are actively looking for work but aren't currently employed
Marginally Attached Workers
Same as discouraged workers, only difference is they would actually like to have a job
Underemployed
Workers who would like to find full time jobs, but are currently working part-time jobs
Labor Force Participation Rate
The percentage of the population age 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
Labor Force
The sum of the unemployed and the employed
Significance of the unemployment rate
The unemployment rate is a good indicator of easy or difficult it is to find a job given the current state of the economy