labor force: number of people in the country that are classified as either employed or unemployed.
unemployment rate:
number of unemployed x 100
# of unemployed + # of employed (labor force)
excluded from labor force:
- kids
- retired people
- military personel
- mentally insane
- incarcerated
- stay at home parents
- full time students
- discouraged workers
why is unemployment good?
- less pressure to raise wages
- more workers are available for future expansion
- not enough capital (GDP)
- too much poverty
- too much gov. assistance needed
for every 1% of unemployment above natural rate of unemployment causes 2% decline in GDP
I like how your notes are nice and neat especially the formulas, very easy to understand. :)
ReplyDeleteI think adding pictures will enhance your post though!
The types of unemployment Types of Unemployment:
ReplyDeleteFrictional Unemployment: unemployment that comes from people moving between jobs,careers, and locations. Ex: people entering the work force from school, people re-entering the the work force after raising children, people changing employers, people changing careers due to change interest.
Structural Unemployment:Unemployment that comes from there being an absence of demand for workers that are available. Changes in technology. Changes in taste.
Cyclical Unemployment: Occurs when the unemployment rate moves in the opposite direction as the GDP growth rate. So when GDP growth is small or low unemployment is high.
Seasonal Unemployment: Unemployment due to changes in the season- loss of job because job is seasonal only around at a certain time of year.
Looking at your blog, I found it really helpful because of the way you displayed your equations because when I looked at my notes it was confusing, so it really helped me clear somethings up about my notes. I think it would be great if you added some visual because i feel like it would be mote helpful. Over all i think your notes were very helpful to me.
ReplyDelete