Unemployment

Unemployment- % of people who do not have jobs but are in the labor force

• Labor force- the number of people  employed + # of people unemployed

People who are excluded from the labor force

• Kids
• military personal
• Mentally insane
• locked up
• stay at home parents
• full time student
• retired people
• Discouraged workers

employed vs unemployed

• Employed : people 16 and older who have a job
• Unemployed : people 16 or older and have actually looked for a job for two weeks
• Unemployment rate: # of unemployed/labor force x 100

Types of unemployment
1.seasonal- mall Santa, life guard
2.Frictional-between jobs,leaving one job for someting bigger and better
3.strucural unemployment-lack of skill or declining industrys
4.cyclical -bad for soceity and individuals ( reccesion)

 Full employment-occurs when  there is no cyclical unemployment
okuns law- every one percent in unemployment over the NRU there is a 2 percent decline in real gdp
Rule of 70- 70 / rate of change