ECO 120 - Employment/Unemployment
Labor Force Participation Rate =
(Labor Force/Population Aged 16+) x 100
Unemployment
the number of people who are actively looking for work, but aren't currently employed.
The unemployment rate can be __________ by NOT including discouraged workers, marginally attached workers, and underemployment.
understated
Unemployment Rate =
(Number of Unemployed Workers/Labor Force) x 100
Labor Force
equal to the sum of employment and unemployment
Discouraged Workers
nonworking people who are capable of work but have given up looking for a job given the state of the job market
The unemployment rate can ____________ the true level of unemployment while people who are easily employed look for the right job
overstate
Employment
the number of people currently employed in the economy, either full time or part time.
Underemployment
the number of people who work part time because they cannot find fulltime jobs
Labor Force Participation Rate
the percentage of the population, aged 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.
Marginally Attached Workers
would like to be employed and have looked for a job in the recent past but are not currently looking for work