ECON 221 Lecture Notes - Workforce, Frictional Unemployment, Unemployment
Document Summary
The unemployment rate is the most commonly used indicator for understanding conditions in the labour market. The labour market is the term used by economists when talking about the supply of labour (from households) and demand for labour (by businesses and other organisations). The unemployment rate can also provide insights into how the economy is performing more generally, making it an important factor in thinking about monetary policy. Unemployment is considered as one of the twin evils (problems) arising from economic instability. Unemployment leads to resource (labour) underutilization and makes the economy fail to produce its potential gdp. In unit we discuss unemployment in terms of its effect economically and socially to the nation. Nearly 80% of population in developing countries belongs to the civilian labour force, and at any given time, millions of these people are without jobs. Being without a job is a problem that has affected almost everyone, and it affects some people more than others.
