Calculate the number of workers employed in each of the regions in July 2015 and July 016. use your answer to calculate the change in the total number of workers employed between July 2015 and July 2016.
What can you infer about the fall in unemployment rates over this period? Was it caused by a net gain in the number of jobs or by a large fall in the number of people seeking jobs?
Across all four regions there was both a net rise in the number of jobs and the number of people seeking jobs. But the number of jobs increased more than the labor force, and the unemployment rate fell.
The accompanying diagram shows the interest rate on one-year loans and inflation during 2001-2016 int the economy of Albernia. When would one-year loans have been especially attractive and why?
One-year loans in Albernia would have been especially attractive during the time inwhich the inflation rate exceeded the interest rate, corresponding to the years of 2004 and 2009. Whenever nominal interest rates are lower than inflation, borrowers are better off and lenders are worse off.
If the concern for retaining workers and encouraging high-quality work leads firms to set a wage rate equal to $16, what will be the level of employment, the size of the labor force, and the unemployment rate?
Employment is the number of people currently employed in the economy, either full time or part time. On the other hand, unemployment is defined as the total number of people who are actively looking for work but aren’t currently employed. That means, just because a person isn’t working doesn’t mean that we consider that person unemployed
Explain the term labor force and the labor force participation rate
A country’s labor force is the sum of employment and unemployment, whereas the labor force participation rate is the percentage of the population aged 16 or older that is in the labor force (either employed or unemployed).
The unemployment rate is the percentage of the total number of people in the labor force who are unemployed.
Explain why it is impossible, that the unemployment rate falls to zero.
If you are searching for work, it’s normal to take at least a few weeks to find a suitable job. Yet a worker who is quite confident of finding a job, but has not yet accepted a position, is counted as unemployed. As a consequence, the unemployment rate never falls to zero, even in boom times when jobs are plentiful.
Explain the term discourage workers
Discouraged workers are nonworking people who are capable of working but have given up looking for a job given the state of the job market (e.g. no suitable jobs are currently available). They don't get counted as unemployed!
Explain the term marginally attached workers
Marginally attached workers would like to be employed and have looked for a job in the recent past but are not currently looking for work. Discouraged workers are part of this group. They don't get counted as unemployed!
Explain the term underenmployed workers
Workers who would like to find full-time jobs buta re currently working part time because they can't find a suitable job. They don't get counted as unemployed!
The unemployment number usually quoted in the news media counts someone as unemployed only if he or she has been looking for work during the past __________.
The unemployment rate is an indicator of
overall labor market conditions
an exact, literal measure of the percentage of people unable to find jobs
During periods of economic expansion the unemployment rate usually
A period in which real GDP is growoing at a bleow-average rate and unemployment is rising is called a __________ or a __________.
jobless recovery or a growth recession
Explain the term job separation
terermination of employment that occurs because a worker is either fired or quits voluntarily.
Explain the term frictional unemployment
Frictional unemployment is unemployment due to the time workers spend in job search. It's basically the time between two jobs, when while the workers is not employed. A certain amount of frictional unemployment is inevitable due to the constant process of economic change.
Why coult a certain amount of frictional employment be a good thing in the economy?
Because the economy is more productive if workers take the time to find jobs that are well matched to their skills, and workers who are unemployed for a brief period while searching for the right job don’t experience great hardship.