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ASU / Economics / ECN 421 / Enumerate the types of unemployed people.

Enumerate the types of unemployed people.

Enumerate the types of unemployed people.

Description

School: Arizona State University
Department: Economics
Course: Labor Economics
Professor: Phyllis griffard
Term: Spring 2016
Tags:
Cost: 25
Name: Math 101
Description: math
Uploaded: 04/23/2016
3 Pages 40 Views 1 Unlocks
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Econ 201: Week 13


Enumerate the types of unemployed people.



Unemployment  

Labor Force Statistics 

• Created by the BLS (Bureau of Labor Statistics) in the U.S. Department of Labor • Based on regular survey submitted from 60,000 households

• Based on “adult population”- 16 years and older

o Disincluding: military, institutionalized, incarcerated, minors

Population divided into 3 groups: by BLS

1. Employed- Paid employer, self-employed, and unpaid workers in a family  business

2. Unemployed- Non-working people that have been looking for work the past 4  weeks

3. Not in the Labor Force- Everyone else (stay at home moms, full time students,  retires)                        


Define frictional unemployment.



Labor Force 

• All people capable of working (whether currently working or not) o Working: Employed

o Actively looking for work: Unemployed

Civilian Adult Population

                 Labor Force            Non-Labor Force                                                   Employed          Unemployed  


What are the three groups of population?



If you want to learn more check out What are the primary bond types?

• Unemployment Rate

o Percentage of unemployment in the Labor Force

o Also called U-Rate

▪ =  100 * (# unemployed/ labor force)

• Labor Force Participation Rate

o Percentage of the Adult Population in the Labor Force  

▪ =  100 * (labor force/ adult population

Understanding Unemployment 

• Categorized by its characteristics and duration

o Not always the same

o Basic truth: there’s always some U

• The natural rate of U

o The normal rate of unemployment around the actual unemployment rate  fluctuates

▪ Made up of frictional and structural unemployment

▪ The long run “average”

• Unemployment Insurance:  

o Government program that provides funding to unemployed workers ▪ Benefits: Reduce income uncertainty; increases search time; increases  possibility of job that is a good fit, this increasing productivity   If you want to learn more check out What is the deutsch word of to play the guitar?

▪ Costs: Increases frictional unemployment  

Explaining Natural Rates of U 

• Frictional Unemployment: If you want to learn more check out What is an area between supply curve and price curve?

o When workers are searching for a job that best suits their skills/taste o Short-term in most cases We also discuss several other topics like What is the study of systems in state of constant motion at rest and constant velocity?

• Structural Unemployment:

o The skills of the worker aren’t “valued” by the market

o Occurs when there aren’t enough jobs in the market

▪ Can be long-term

▪ Can result from “sticky wages”

Explaining Structural U: Policy 

Occurs when wages are above equilibrium

1. Min Wage Laws: Price floor (mostly effects teen employment) 2. Unions: Worker association; collective bargaining w/  employers over wages, benefits, and working conditions  3. Efficiency Wages: Firms voluntarily pay higher than  equilibrium wages to boost worker productivity If you want to learn more check out Who are the three warrior brothers represent roma side of the war?

Cyclical Unemployment 

• The deviation of unemployment from its natural rate • Associated with the business cycles: short-run If you want to learn more check out Define velocity.

• Result of deficient demand

Labor Market Statistics: Policy 

• The Official U Rate (U-3) and others: published by BLS o Statistics based on demographic information

o Measured the length of U

W1: actual wage Weqm

• Data shows drastically different labor market experiences for different groups (age,  race, etc.)

• Trends help policy makers make better polices

o Caveat: Trends can inform, even if data flawed  

Types of Unemployed People 

• Marginally Attached: person is neither working nor looking for work; person  wants to work, is available, and has looked in the past 2 months. Is not included in U.

• Discouraged Workers: person would like to work, but has stopped looking  because of a, “given up on the job market” related reason. Identified as “Not in the  Labor Force.”

• Underemployment: person is working below their skill level. U-rate fails to show  economy failure.

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