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