BELL RINGER 05.06.2015Write complete question and answer on your Bell Ringer form.

Write down every word or idea you associate with the term “unemployment.”

ECONOMICSMay 6, 2015

Chapter 13: Economic ChallengesSection 13.1: Unemployment

BASIC UNDERSTANDING13.1

There is ALWAYS unemployment, even in the best economies.

FOUR TYPES OF UNEMPLOYMENT

13.1

Frictional unemployment is when you’re not working but looking for a job.

FOUR TYPES OF UNEMPLOYMENT

13.1

Seasonal unemployment is when your work shuts down for a season.

Structural unemployment is when your skills don’t match the jobs that are available.

FOUR TYPES OF UNEMPLOYMENT

13.1

New technology

New resources

Changes in demand

Globalization

Lack of education

FOUR TYPES OF UNEMPLOYMENT

13.1

Cyclical unemployment is when unemployment rises in bad times and falls in good times.

Workers laid off

Expectation of jobs coming back

Unemployment insurance established by Social Security Act of 1935.

MEASURING EMPLOYMENT13.1

The Department of Labor checks a sample of the population (50,000 families) based on the latest census.

MEASURING EMPLOYMENT13.1

employed + unemployed = labor force

(unemployed / labor force)100 = unemployment rate (%)

MEASURING EMPLOYMENT13.1

The monthly unemployment rate usually is “seasonally adjusted” so a more fair comparison can be made to other months.

FULL EMPLOYMENT13.1

The term full employment refers to a period where no cyclical unemployment exists.

FULL EMPLOYMENT13.1

People who are highly skilled in a low-skill job or who is educated and trained for a job in a field with few possibilities are called underemployed.

FULL EMPLOYMENT13.1

Discouraged workers have been unemployed for some time and have given up on finding work.

Discouraged workers do not show up in the unemployment figures.

FULL EMPLOYMENT13.1

Terrorism affect full employment as it can shut some industries down (travel, construction).

CHECK QUESTION 13.1Write complete question and answer on your Bell Ringer form.

Why isn’t full employment the same as zero unemployment?