Study 2 Understanding Unemployment with 12 free online flashcards. Review key terms, definitions, and concepts with this interactive flashcard deck.
Who counts as officially unemployed in U.S. statistics?
Officially unemployed people had no job during the reference week, were available for work, and actively searched in the previous four weeks. Temporary layoffs while awaiting recall also qualify; receiving benefits is not required.
What two groups make up the labor force?
The labor force is the total of employed and officially unemployed people: labor force=employed people+unemployed people.
How is the official unemployment rate (U-3) calculated?
U-3 divides unemployed people by the labor force and multiplies by 100: unemployment rate=labor forceunemployed people×100.
What is the unemployment rate with 100 unemployed and 1,000 in the labor force?
The unemployment rate is 1,000100×100=10%. The 200 residents outside the labor force are not in the denominator.
Who is classified as outside the labor force?
People who are neither employed nor officially unemployed are outside the labor force. This includes many students, retirees, caregivers, and people not currently seeking work.
How are people working part time classified?
A part-time worker is classified as employed, even if they want full-time work. U-6 includes people working part time for economic reasons.
What does the labor force participation rate measure?
It is the labor force divided by the civilian noninstitutional population age 16 and older, multiplied by 100. It measures the share working or actively looking for work.
What does the employment-population ratio measure?
It is employed people divided by the civilian noninstitutional population age 16 and older, multiplied by 100. It shows what share of that population is employed.
How do U-4, U-5, and U-6 broaden U-3?
U-3 is the official rate; U-4 adds discouraged workers, U-5 adds all marginally attached workers, and U-6 also includes people working part time for economic reasons.
What makes a worker discouraged under the BLS definition?
A discouraged worker wants and is available for a job, searched in the past year, but did not search in the last four weeks because they believe suitable jobs are unavailable. They are not officially unemployed.
What causes frictional unemployment?
Frictional unemployment occurs while people move between jobs or enter the labor force and search for a suitable position.
What causes structural unemployment?
Structural unemployment results when workers’ skills, locations, or experience do not match the jobs available. Retraining may help workers qualify for jobs in growing fields.
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