ECON 1010 Chapter 5: CHAPTER 5
CHAPTER 5: MONITORING JOBS AND INFLATION
5.1 Employment and Unemployment
➢ Why Unemployment is a Problem
○ Lost incomes and population
■ Loss of jobs brings loss of income and lost population
■ Unemployment benefits create a safety net, but they don’t replace lost
earnings
■ Lost Production = lower consumption and lower investment in capital
→ lowers living standard in both present and future
○ Lost human capital
■ Prolonged unemployment permanently damages a person’s job prospects
by destroying human capital
○ Labor Force Survey
■
■ Total pop is divided into working age pop and others
● Working age is divided into labor force and those not in labor force
○ Labor force is divided into employed and unemployed
■ Employed is either full time or part time
● Part time is either voluntary or involuntary
■ To be Unemployed
● On temporary layoff w/expectation of recall
● Without work but has looked for work in the
past 4 weeks
● Has a new job to start w/in 4 weeks
■ Working-age Population: total number of ppl aged 15 and over who are
not in jail, hospital, or other form of institutional care
■ Labor Force: the sum of ppl who are employed AND unemployed
○ 4 Labor Market Indicators
Document Summary
Loss of jobs brings loss of income and lost population. Unemployment benefits create a safety net, but they don"t replace lost earnings. Lost production = lower consumption and lower investment in capital. Lowers living standard in both present and future. Prolonged unemployment permanently damages a person"s job prospects by destroying human capital. Total pop is divided into working age pop and others. Working age is divided into labor force and those not in labor force. Labor force is divided into employed and unemployed. Employed is either full time or part time. Part time is either voluntary or involuntary. Without work but has looked for work in the past 4 weeks. Working-age population: total number of ppl aged 15 and over who are. Has a new job to start w/in 4 weeks not in jail, hospital, or other form of institutional care. Labor force: the sum of ppl who are employed and unemployed.
