Download Think of all the words connected to unemployment and fill in as

Think of all the words connected to unemployment
and fill in as many as you can think apply to the
word.
UNEMPLOYMENT
Types of Unemployment
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Frictional - Occurs when people are
laid off or take time off from work
Accepted part of an economy that is
working properly
Ex. A clothing store clerk is laid off
when the owner retires and sells the
business
Why is this an example of
frictional unemployment?
Seasonal Unemployment
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Occurs as a result of harvest
schedules or vacations, or when
industries slow or shut down for a
season.
A normal part of a healthy economy
Ex. Landscaper who is temporarily laid
off during the winter and rehired in the
spring
Structural Unemployment
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Occurs when workers’ skills do not match
the jobs that are available.
Can be overcome through retraining.
An expected part of a properly working,
continually advancing economy.
Ex. Automobile worker is laid off when the
company moves its work to another country.
No similar work is available locally
Cyclical Unemployment
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Rises during economic downturns, or
recessions, and falls when the economy
returns.
A recurring part of the business cycle but
indicates that the economy is not working
properly.
Ex. A steel worker is laid off when a
recession causes a large decrease in the
demand for steel.
Full employment
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When working properly, the natural
rate of unemployment is between 4 –
6%.
When there is NO cyclical
unemployment, we call this full
employment.
Underemployment

Due to a loss in a job, when a person
is forced to take a lower quality job
even though a person’s skill and
education is clearly over-qualified for
the job.
Forget the confusing way and
just follow the formula
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Unemployment Rate = Number of
People unemployed / Civilian Labor
Force Multiplied by 100.
Civilian labor Force = Employed +
unemployed
Let’s Practice

Calculate the unemployment rate
based on the following statistics. There
are 500,000 people in the economy.
Currently, 300,000 people are currently
employed. And 20,000 people are
currently looking for a job, but cannot
find one.
What’s the answer?
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6.25%