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Episode 18 UNEMPLOYMENT (2:50) http://mcjags.com/Page/2410 Episode
18: UNEMPLOYMENT (2:50)UNEMPLOYMENT
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THE LABOR FORCE: Includes all the members of the population who
are employed or actively looking for work Only adults (ages 16 +)
who are NOT incarcerated DISCOURAGED WORKERS: people not in the
labor force; they want to work but have given up looking for a job
because they dont believe any are available UNDEREMPLOYED WORKERS:
work at jobs which pay below their skill level; often work 2 or
more jobs; are counted
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AVERAGE LABOR PRODUCTIVITY a measure of how much the typical
worker can produce Mathematically, this is the economys AVG. LABOR
= TOTAL OUTPUT (GDP) PRODUCTIVITY TOTAL # OF WORKERS
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UNEMPLOYMENT: UNEMPLOYMENT RATE: the number of people employed
divided by the labor force
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4 TYPES OF UNEMPLOYMENT STRUCTURAL CYCLICAL FRICTIONAL
SEASONAL
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Episode 19: TYPES OF UNEMPLOYMENT (4:19)
http://mcjags.com/Page/2410 Episode 19: TYPES OF UNEMPLOYMENT
(4:19)TYPES OF UNEMPLOYMENT
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STRUCTURAL UNEMPLOYMENT Results from changes in the goods that
consumers demand Results from changes in TECHNOLOGY PROGRESS! Gale
of creative destruction Joseph Schumpeter Its a mismatch between
SKILLS workers possess and SKILLS the market demands (People dont
want BUGGY WHIPS; they want STEERING WHEELS now!)
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CYCLICAL UNEMPLOYMENT Due to fluctuations in the business cycle
MOST SERIOUS TYPE: the economy is in trouble CONTRACTING IN A
TROUGH IN A RECESSION RECESSION: two consecutive quarters (6 mo.)
of negative growth in GDP DEPRESSION: eight consecutive quarters (2
yrs.) of negative growth in GDP
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FRICTIONAL UNEMPLOYMENT Results from the time-lag between when
a worker is fired or quits his job and when he finds a new one Job
searching, applying and interviewing, relocating, and moving up!
Can NEVER be eliminated (only reduced) Not always bad! (quit a
crummy job for a better one!)
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SEASONAL UNEMPLOYMENT: Jobs are associated with seasons
Lifeguards = unemployed in the winter Roofers = work during hot
summer
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NATURAL UNEMPLOYMENT RATE Even when the ECONOMY is at FULL
EMPLOYMENT, some types of UNEMPLOYMENT are inevitable: --frictional
(main component of natural unemployment) --seasonal (least serious)
--STRUCTURAL (serious) due to progress! (Think buggy whips)
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Recently viewed as 4 to 5 %, but could be moving up!
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Current Unemployment Rate Nov. 2010: 9.8%
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Newshour Reports: REALITIES of the Recession & Changing
Workforce (20:44) REALITIES of the Recession & Changing
Workforce UNEMPLOYMENT - Many Left Uncounted (10:53) UNEMPLOYMENT -
Many Left Uncounted FINDING WORK (7:21) FINDING WORK LENGTHY
JOBLESSNESS TAKES TOLL ON 99ers (9:19) STRESS and BURNOUT TAKING
TOLL on WORKERS STRESS and BURNOUT TAKING TOLL on WORKERS
(7:53)
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CARDS UP on EMPLOYMENT!
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1. Which of the following groups is part of the labor force? a.
people in prison b. people in the army c. people who are retired d.
people under sixteen e. people counted in the unemployment
rate
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2. Frictional unemployment is caused by a. obsolete (outdated)
skills b. economic downturn c. high inflation d. undervalued
currency e. time-lag between jobs
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3. Structural unemployment is caused by a. skills mismatch b.
undervalued currency c. economic downturn d. high inflation e.
time-lag between jobs
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4. Cyclical unemployment is caused by a. time-lag between jobs
b. economic downturn c. undervalued currency d. high inflation e.
skills mismatch
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1 26. Bob is laid off during a recession. He is a. frictionally
unemployed b. seasonally unemployed c. cyclically unemployed d.
structurally unemployed e. technologically unemployed
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3. Bills is a roofer. He doesn't work in Dec.-Mar. He's a.
seasonally unemployed b. structurally unemployed c. cyclically
unemployed d. technologically unemployed e. frictionally
unemployed
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28. Betty lost her job as a key punch operator when the
computer industry advanced to optical scanning and other easier
forms of input: a. seasonally unemployed b. frictionally unemployed
c. technologically unemployed d. structurally unemployed e.
cyclically unemployed
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5. Jill recently quit her job as a restaurant hostess because
she just finished college and is going to work as a physical
therapist. a. technologically unemployed b. cyclically unemployed
c. seasonally unemployed d. structurally unemployed e. frictionally
unemployed
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6. An abnormally high rate of which type of unemployment
indicates a problem in the economy? a. seasonal b. frictional c.
structural d. technological e. cyclical
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7. Which of the following is not counted in the natural rate of
unemployment and indicates a problem in the economy? a. frictional
unemployment b. technological unemployment c. cyclical unemployment
d. seasonal unemployment e. structural unemployment
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8. In the United States, the natural rate of unemployment is
approximately a. 2% b. 15% c. 0% d. 10% e. 5%
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END OF QUIZ
Slide 38
Video Tutorial on UNIONS: ECONOMICS USA: Program #9 LABOR AND
MANAGEMENT (30:00)LABOR AND MANAGEMENT