ECON 201 Lecture Notes - Lecture 1: Current Population Survey (Us), United States Census Bureau, Human Capital

• School: University of Maryland
• Department: Economics
• Course: ECON 201
• Professor: John Neri

Document Summary

Why unemployment is a problem: unemployment is a serious personal and social economic problem for two main reasons, lost incomes and production, unemployment benefits create a safety net, but they don"t fully replace lost earnings. Lost production means lower consumption and a lower investment in capital. Lowers the living standard in present and future: lost human capital, prolonged unemployment permanently damages a person"s jobs prospects by destroying human capital. In july 2014, 10 million americans wanted a job but couldn"t find one: 8 million more had given up looking for a full-time job and taken a part-time job. The unemployment rate: the unemployment rate is the percentage of the labor force that is unemployed, the unemployment rate: 1980-2014, the unemployment rate increases in a recession. The employment-to-population ratio: the percentage of the working-age population who have jobs, the employment-to-population ratio is (employment/ working-age population) x 100.