| 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 around which the unemployment rate fluctuates |
| Cyclical Unemployment | the deviation of unemployment from its natural state |
| 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 workers' 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 |