Module 12: the meaning and calculation of unemployment

when does unemployment always rise?

Unemployment always rises during recessions

when does unemployment typically fall?

Unemployment usually falls during expansions

discouraged workers

nonworking people who are capable of working but have given up looking for a job due to the state of the job market (part of marginally attached workers)

unemployment rate

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

labor force

the sum of the employed and the unemployed.

labor force participation rate

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

unemployed

people who are actively looking for work but aren't currently employed.

employed

people who are currently holding a job in the economy, either full time or part time.

growth recession

periods in which GDP is growing, but at a below-average rate; these are periods in which the economy isn't in a recession but unemployment is still rising

Marginally attached workers

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

underemployed

workers who would like to work more hours or who are overqualified for their jobs.