Unemployment

What is unemployment

-% of people in the labor force who want a job are not working.

Employed

-at least 1 hr worked a month

-temporarily absent from work

-part time workers

(NOT IN THE LABOR FORCE)

-kids

-full time students

-retirees

-military personal

-those in mental institution 

-incarcerated people

-stay at home mom and dads

Discouraged 

-people who are mentally and socially beaten down when applying for a job. 

Metrics- 4-5%  

Labor force- Unemployed + employed

Frictional Unemployment-Temporarily unemployed or between jobs

Seasonal Unemployment- Specific type of frictional unemployment which is due to time and years.

Structural Unemployment- Changes in structure of the labor force, making skills obsolete.

Cyclical Unemployment- Unemployment due to recession

Frictional + Structural= Natural Rate of unemployment, (4-5%) Full employment

Full employment means no Cyclical unemployment.

Okun's Law- When unemployment rises 1% above the natural rate, GDP falls by 2%