Ch. 15 Unemployment
Terms
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- Labor force
- the total number of workers, including both the employed and the unemployed
- Unemployment rate
- the percentage of the labor force that is unemployed
- Labor-force participation rate
- the percentage of the adult population that is in the labor force
- Natural Rate of Unemployment
- the normal rate of unemployment around which the unemployment rate fluctuates
- Cyclical unemployment
- the deviation of unemployment from its natural rate
- Discouraged Workers
- individuals who would like to work but have given up looking for a job
- Frictional Unemployment
- unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills
- Structural Unemployment
- unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one
- Job Search
- the process by which workers find appropriate jobs given their tastes and skills
- Unemployment insurance
- a government program that partially protects worker’s incomes when they become unemployed
- Union
- a worker association that bargains with employers over wages, benefits, and working conditions.
- Collective bargaining
- the process by which unions and firms agree on the terms of employment
- Strike
- the organized withdrawal of labor from a firm by a union
- Efficiency Wages
- above-equilibrium wages paid by firms to increase worker productivity
- current population survery
-
monthly survey of 60,000 households by the
BLS (bureau of labor statistics) - What is the Labor Force Equation?
- # of employed + # of unemployed
- what is the Unemployment Rate equation?
- (# of unemployed/ labor force)x 100
- What is the labor force participation rate equation?
- (labor force/ adult popln)x100
- What are sectoral shifts?
-
Changes in the composition of demand among industries or regions
eg: oil price DOWN= employment DOWN= auto co. employ and production UP - What is the National Labor Relations Board (NLRH)?
- gov't agency that enforces workers' right to unionize