LABOR

LABORAnd UNEMPLOYMENTVideo tutorial:http://mcjags.com/Page/2410 Go to ECON LINKS PAGE and scroll to VIDEO TUTORIALS: MACROECONOMICS and choose Episode 18 UNEMPLOYMENT (2:50)

Episode 18: UNEMPLOYMENT (2:50)THE LABOR FORCE:Includes all the members of the population who are employed or actively looking for workOnly adults (ages 16 +) who are NOT incarceratedDISCOURAGED 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 availableUNDEREMPLOYED WORKERS: work at jobs which pay below their skill level; often work 2 or more jobs; are counted

AVERAGE LABOR PRODUCTIVITYa measure of how much the typical worker can produceMathematically, this is the economys AVG. LABOR = TOTAL OUTPUT (GDP)PRODUCTIVITY TOTAL # OF WORKERSUNEMPLOYMENT:UNEMPLOYMENT RATE: the number of people employed divided by the labor force

4 TYPES OF UNEMPLOYMENTSTRUCTURALCYCLICALFRICTIONALSEASONALVideo Tutorial :http://mcjags.com/Page/2410: Go to ECON LINKS PAGE and scroll to VIDEO TUTORIALS: MACROECONOMICS and choose Episode 19: TYPES OF UNEMPLOYMENT (4:19)

Episode 19: TYPES OF UNEMPLOYMENT (4:19)

STRUCTURAL UNEMPLOYMENTResults from changes in the goods that consumers demandResults from changes in TECHNOLOGY PROGRESS! Gale of creative destruction Joseph SchumpeterIts a mismatch between SKILLS workers possess and SKILLS the market demands(People dont want BUGGY WHIPS; they want STEERING WHEELS now!)

CYCLICAL UNEMPLOYMENTDue to fluctuations in the business cycleMOST SERIOUS TYPE: the economy is in troubleCONTRACTINGIN A TROUGHIN A RECESSION

RECESSION: two consecutive quarters (6 mo.) of negative growth in GDPDEPRESSION: eight consecutive quarters (2 yrs.) of negative growth in GDP

FRICTIONAL UNEMPLOYMENTResults from the time-lag between when a worker is fired or quits his job and when he finds a new oneJob 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!)SEASONAL UNEMPLOYMENT:Jobs are associated with seasonsLifeguards = unemployed in the winterRoofers = work during hot summerNATURAL UNEMPLOYMENT RATEEven 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)

Recently viewed as 4 to 5 %, but could be moving up!

Current Unemployment Rate Nov. 2010: 9.8%

Newshour Reports:REALITIES of the Recession & Changing Workforce (20:44)

UNEMPLOYMENT - Many Left Uncounted (10:53)FINDING WORK (7:21)LENGTHY JOBLESSNESS TAKES TOLL ON 99ers (9:19)

STRESS and BURNOUT TAKING TOLL on WORKERS (7:53)

24CARDS UP on EMPLOYMENT!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

2. Frictional unemployment is caused by a. obsolete (outdated) skills b. economic downturnc. high inflation d. undervalued currencye. time-lag between jobs

3. Structural unemployment is caused by a. skills mismatch b. undervalued currency c. economic downturn d. high inflation e. time-lag between jobs

4. Cyclical unemployment is caused by a. time-lag between jobs b. economic downturn c. undervalued currency d. high inflation e. skills mismatch

1 26. Bob is laid off during a recession. He is a. frictionally unemployed b. seasonally unemployedc. cyclically unemployed d. structurally unemployede. technologically unemployed

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

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 unemployedd. structurally unemployed e. cyclically unemployed

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

6. An abnormally high rate of which type of unemployment indicates a problem in the economy? a. seasonal b. frictionalc. structurald. technological e. cyclical

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 unemploymentd. seasonal unemployment e. structural unemployment

8. In the United States, the natural rate of unemployment is approximately a. 2% b. 15% c. 0% d. 10% e. 5%

END OF QUIZVideo Tutorial on UNIONS:ECONOMICS USA: Program #9 LABOR AND MANAGEMENT (30:00)