Unemployment

Unemployment Rate - The percent of people in the labor force who want a job but are not working.
Labor Force - Number of people in a country classified as employed or unemployed.

Employed -
-Works atleast one hour a month
-Considered temporarily absent from work
- Part-time; considered employed

Not in Labor force -
- Kids
- Full time students
- People in mental institutions
-Military personnel
-Stay at home moms/dads
-Retirees
- Incarcerated people
- Discouraged workers; people who are not looking for work or gave up

Employment Rate = # unemployed  / # labor force X 100
(Labor Force = unemployed + employed)

Types of Unemployment's

1. Frictional - Being between jobs; people with transferable skills

2. Seasonal - Due to the time of year and nature of the job

3. Structural - Changes in the structure of the labor force and workers who dont have transferable skills.

4. Cyclical - Unemployment that results from economic downturns like a recession.
- When demand for goods fall, demand for labor falls
- Natural Rate of Employment (NRU) = Frictional + Structural