Unemployment
Economists consider the civilian labor force to be fully employed when
About 95% is employed
The civilian labor force includes
All non military employed persons and all those over 16 who are looking for work but are not yet employed
Frictional and seasonal unemployment
Are of less social concern because they last a short time and make up about 5% of unemployment when there is full employment
When the jobs that are available require either basic or even specialized skills that the people looking for work do not have, there is
Structural unemployment
Unemployment
Condition of those who are willing and able to work and are actively seeking full time work but who do not currently work
When there is not enough demand for goods and services in the economy, producers reduce their level of production, causing
Cyclical unemployment
Seasonal Unemployment
Decrease in demand because of change in season (construction)
Full employment is considered to be about 95% employment because 5% is allowed for structural u employment
False
If the help-wanted ads are full of openings for plumbers but not for welders, then welders looking for a job at that time would be frictionally unemployed
False
If you are independently wealthy and choose not to work, you will be counted among the unemployed
False
The unemployment rate is about the same throughout the United States and about the same for the people of all races, genders, and age groups
False
A recession occurs when
GDP declines for two consecutive quarters and unemployment rises
5 factors that influence unemployment rate
Gender, age, race, education, and geographic location
The civilian labor force excludes all of the following except
Government workers
Frictional unemployment occurs when workers
Have employable skills but are either between jobs or have not yet started their first jobs after completing school or training
Of the following statements, the one that is most true about the distribution of unemployment in our economy is that it is
High among nonwhites, women, and the young
Structural Unemployment
Matches between job seekers and job openings, lack skills (online class no teaching jobs)
Rate Equation
Number unemployed/ number in civilian labor force
Cyclical Unemployment
People who are not working because firms do not need their labor due to a lack of demand (restaurant losing business so less workers)
Frictional Unemployment
People who are temporarily between jobs, or trying to find best opportunity after school (mother wants to work after child leaves for college)
Unemployment Rate
Percentage of the civilian labor force that is considered unemployment
The employment act of 1946 was a commitment by the congress of the United States to
Pursue economic policies that would promote maximum levels of employment in the economy
Structural unemployment can be reduced in all of the follows ways except by
Reducing government subsidies to businesses for on-the-job training programs
Some kinds of industries use many workers at certain times and very few workers at other times of the year. This type of unemployment is
Seasonal
Economists define the unemployment rate as
The percentage of the total civilian labor force that is unemployed
The bureau of labor statistics reports the official unemployment rate, but this rate does not include
Those who give up looking and still want a job, part-time jobs that want full-time jobs, and hidden unemployment
Civilian Labor Force
Total number of people in the working age group who are either employed or actively seeking employment
A recession is defined as the condition in which unemployment is high and GDP falls for two or more consecutive quarters
True
John Barber earns his living each year as a professional golfer in Michigan. During the winter months, he could be considered seasonally unemployed
True
Persons without any education or training who are looking for jobs could be considered structurally unemployed
True
The group within our economy that experiences the highest unemployment rate is the age group from 16 to 19
True
Unemployment is usually measured as the percentage of the civilian labor force that is currently unemployed
True
When aggregate demand decreases, cyclical unemployment increases
True
Unemployment hurts the economy because
Unemployed persons are not adding to GDP
The overall trend in the employment rates in the United States is
Upward