22 terms

Unemployment and Employment

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unemployed person
Someone who is available to work and 1) has actively searched for work in the last four weeks, 2) has been laid off from a job and is waiting to be recalled, 3) will start a new job in the next 30 days.
labor force
the source of trained people from which workers can be hired
working age population
total number of people aged 16 years and over who are not in jail, hospital, or some other form of institutional care or in the US armed forces.
labor force participation rate
the percentage of the working age population in the labor force
employment to population ratio
the ratio (usually expressed as a percentage) of employed workers to the working age population
aggregate hours
the total number of hours worked by all workers in the economy in a given period of time.
natural unemployment rate
the unemployment rate that exists in normal times when there is neither a recession nor a boom and real GDP is equal to potential GDP.
cyclical unemployment
unemployment due to a recession, when the rate of unemployment is above the natural rate of unemployment
frictional unemployment
unemployment arising from normal turnover in the labor market, such as when people change occupations or locations, or are new entrants
structural unemployment
unemployment due to structural problems such as poor skills, longer-term changes in demand or insufficient work incentives
Current Population Survey
Unemployment and employment in the United States are measured by the _ .
job vacancies
positions that firms are trying to fill, but for which they have yet to find suitable workers
new entrant
Being a _ _ is the least likely reason for a person to be unemployed.
Teenagers and minorities
_ _ in the United States have very high unemployment rates, even in boom years, and are often the first to suffer in times of recession.
labor demand curve
a downward-sloping relationship showing the quantity of labor firms are willing to hire at each wage
labor supply curve
upward sloping relationship showing the quantity of labor workers are willing to supply at each wage
real wage
the wage or price of labor adjusted for inflation; in contrast, the nominal wage has not been adjusted for inflation
job rationing
a reason for unemployment in which quantity of labor supplied is greater than the quantity demanded because the real wage is too high
job search
a reason for unemployment in which uncertainty in the labor market and worker's limited information requires people to spend time searching for a job
insider
a person who already works for a firm and has some influence over wage and hiring policy
outsider
someone who is not working for a particular firm, making it difficult for him or her to get a job with that firm even though he or she is willing to work for a lower wage
efficiency wage
a wage higher than that which would equate quantity supplied and quantity demanded, set by employers in order to increase work efficiency for example, by decreasing shirking by workers