Unemployment Rate
How do you calculate the unemployment rate?
unemployed/ labor force*100
What is cyclical?
unemployment caused by a recession - right skills but jobs do not exist
What is structural unemployment?
unemployment caused by changes in the industrial makeup of the economy - jobs exist but the skills do not match
What is frictional unemployment?
unemployment caused by delays in matching available jobs and workers
What is the full employment output?
unemployment= natural rate and no cyclical employment exists
Who are excluded from labor force statistics?
children, retirees, stay at home moms and dads students not seeking work, discouraged workers, military persons with disabilities can not work
What is u-6 unemployment rate?
counts discouraged workers as unemployed and is higher than U-3 rate
What are the different types of unemployment?
frictional, structural, creative destruction, cyclical
What is the labor force participation rate?
the percentage of working age population either working or seeking employment in the past 4 weeks
How many jobs were created in April?
164,000
What happens in a recession?
2 quarters drop in GDP and unemployment rate increases
When was the last recession?
2008
What does the BLS sample?
60,000 random households
What is U-3?
It is the official unemployment rate
Where can you find information about unemployment?
bls.gov
What is the natural rate of unemployment?
it is the typical unemployment rate that occurs when the economy is growing rapidly
What is creative destruction?
it occurs when the introduction of new technologies leads to the end of other industries and jobs
What was the rate of unemployment in April?
it was 3.9%
What happens when discouraged workers go up?
labor participation rate goes down
How often does Unemployment rate come out?
monthly
Are discouraged workers counted as unemployed in the U3 rate?
no
Who does the labor force include?
people who are employed or unemployed actively seeking work in the past 4 weeks
What does unemployment rate calculate?
percentage of labor force that is unemployed
What are discouraged workers?
workers that are not actively seeking work in the past month
