ECON 1100 Lecture Notes - Lecture 11: Jobless Recovery, Business Cycle, Overproduction
Document Summary
Someone who is at least 16 who is actively seeking for a job for the past four weeks. Non institutionalized adults - all workers employers or unemployed. The ratio of adults who are employed over the whole population. Note: unemployment can also be calculated using the opposite of labor force participation. Discouraged workers are not counted in unemployment rates. Therefore this shows that the rate of unemployment is not very accurate because it"s often underestimated. (people who are overqualified ) However, the unemployment rate is a good indicator of the state of the labor market. The relationship between the business cycle and unemployment: When it doesn"t, we call it a jobless recovery. If you have negative numbers for unemployment we are talking. Note: about a change in the unemployment rate, not the unemployment rate. For the us, in the past 50 yrs, the unemployment rate has never dropped below 2. 9%
