Unemployment
Review these sections from the Macroeconomics chapter assigned in Unit 2.1, which define and discuss the concept of unemployment. As you will find out, there are specific characteristics that have to be present for for someone to be considered "unemployed". The mere fact of a person not having a job is not sufficient for that determination. Read this section of the text to find out more.
Introduction
KEY TAKEAWAYS
- People who are not working but are looking and available for work at any one time are considered unemployed. The unemployment rate is the percentage of the labor force that is unemployed.
- When the labor market is in equilibrium, employment is at the natural level and the unemployment rate equals the natural rate of unemployment.
- Even if employment is at the natural level, the economy will experience frictional and structural unemployment. Cyclical unemployment is unemployment in excess of that associated with the natural level of employment.