Unemployment
What is unemployment? Who is considered to be unemployed?
Unemployment - basically this refers to the "failure" to use available resources.
What are the types of unemployment?
1. Frictional
- these are people that are temporary, transitional, short-term, or in between jobs, or searching for jobs.
- this also includes graduates (high school and college)
- people that get fired or quit.
2. Cyclical
- caused by recession face of business cycle.
3. Structural
- this type of unemployment is caused by technology, long-term technological effects, such as replacement of people with robots.
4. Seasonal
- unemployment caused by lack of jobs due to difference in season, (example would be summer jobs, or jobs during the xmas time).
Who is unemployed?
- Homeworkers, students, retirees, disabled people, discouraged workers, people that are in prison or mental institutions, the ones that have lost their job, been fired, quit their job, the ones that are layed off, entrance and reatrance.
Is there a formula for unemployment?
Unemployment = (#of unemployed) / (total labor force)
The total labor force = #of unemployed + #of employed.
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