BUSS1040 Lecture Notes - Lecture 12: Full Employment, Business Cycle, Phillips Curve

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1040
• Professor: Dr Katrien Stevens

Document Summary

A(cid:374) i(cid:373)porta(cid:374)t (cid:373)easure of a(cid:374) e(cid:272)o(cid:374)o(cid:373)(cid:455)(cid:859)s perfor(cid:373)a(cid:374)(cid:272)e: measure of utilizatio(cid:374) of a(cid:374) e(cid:272)o(cid:374)o(cid:373)(cid:455)(cid:859)s la(cid:271)our for(cid:272)e. The population is divided into two groups: the working-age population the number of people aged 15 years and older, people too young to work (under 15 years of age) The working-age population is divided into: people in the labour (working or seeking work, people not in the labour force. The labour force is the sum of employed and unemployed workers. There is also a concept of underemployment: the underemployment rate is the proportion of the labour force that has a job but would like to work more hours. Four labour market indicators are: the unemployment rate, the labour force participation rate, the employment-to-population ratio, the underemployment rate. A strong labour market is usually characterized by low unemployment and high labour force participation rate (together giving a high employment to population ratio) Strong labour markets offer more full-time jobs and have a low underemployment rate.