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Unemployment

Unemployment. December 7, 2009. 18 Days until Christmas. 4 Types of Unemployment. 1 – Frictional Choose to be unemployed People take time to find a job EX: People changes jobs, be laid off, need time to find a job after schooling.

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Unemployment

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  1. Unemployment December 7, 2009 18 Days until Christmas

  2. 4 Types of Unemployment • 1 – Frictional • Choose to be unemployed • People take time to find a job • EX: People changes jobs, be laid off, need time to find a job after schooling. • You quit a job at a hospital for a better job at a doctor’s office. When you are in the interview process you are unemployed frictionally!

  3. 4 Types of Unemployment • 2 – Seasonal • Laid off at certain times of the year, every year. • When industries slow or shut down for a season • Part of a healthy economy • EX: Farmers in the Winter, Mackinac City/Island workers, Cedar Point, Big 3

  4. 4 Types of Unemployment • Cyclical • U/E rises during economic downturns • U/E falls when things get better • During recessions, demand for products goes down therefore businesses do not need so many employees and lay people off. • We say we have Full Employment, when cyclical unemployment is very low.

  5. 4 Types of Unemployment • Structural • Worker skills do not match the jobs currently available • 1900’s when US switched from farming to industrial jobs • There are 5 CausesStructural Unemployment • Development of New Technology • Discovery of New Resources • Changes in Consumer Demand • Globalization • Lack of Education

  6. Measuring Employment • The census bureau conducts a survey each month They interview people about their employment – this is used to calculate the unemployment rate • Unemployment Rate – the percentage of the nation’s labor force that is unemployed - average • Calculated by dividing the number of unemployed by the labor force and multiplying by 100 • Labor force – civilians 16 and up who have a job or who are actively looking for work • Does not included discouraged workers

  7. Measuring Employment • Full Employment • 0% U/E = impossible • 4-6% is normal • Every economy will experience all four types of unemployment • Full employment - no cyclical U/E • Underployment • People working who are not working where they want to be • Overqualified, working part time (want to work full)

  8. The United States Unemployment Today

  9. Unemployment in America • Current Unemployment – 10% • Current Underemployment – 17.2% • http://www.whitehouse.gov/blog/2009/12/05/weekly-address-pushing-forward-jobs • http://www.Hfii.weebly.com

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