Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Cyclical unemployment
Transcript
Total Population age 16 and over Not in Labor Force Armed forces Household workers Students Retirees Disabled persons Institutionalized Discouraged workers Civilian labor force Employed Employees Self-employed Unemployed New entrants Re-entrants Lost last job Quit last job Laid off Frictional – “temporary”, “transitional”, “short-term.” (“between jobs” or “search” unemployment) 1.People who get “fired” or “quit” to look for a better one. [30 mil. a yr] [6 million U.S. workers get laid off each year] 2. “Graduates” from high school or college who are looking for a job. 3. “Seasonal” or weather-dependent jobs such as “agricultural”, “construction”, “retail”, or “tourism”. [lifeguards, resort workers, Santa’s, & migrant workers.] Frictional unemployment signals that “new jobs” are available and reflect of “freedom of choice”. These are qualified workers with “transferable” skills. Structural – “technological” or “long term”. There are basic changes in the “structure” of the labor force which make certain “skills obsolete”. [also caused by“international competition”] • Automation may result in job losses (a robot took your job). The auto reduced the need for carriage makers. Farm machinery reduced the need for farm laborers. • Consumer taste may make a good “obsolete”. • These jobs do not come back. • Non-transferable skills– choice is prolonged unemployment or retraining. “Creative destruction” means as jobs are created, other jobs are lost. Jobs of the future destroy jobs oftoday. *Frictional and Structural make up the natural rate of unemployment or full employment. 6 5 2 4 billion 4 20 billion 8 8 billion Wage Surplus of labor = Unemployment Labor supply Minimum wage WE Labor demand 0 LD LE LS Quantity of Labor Cyclical – economic downturns in the business cycle. •Cyclical fluctuations caused by deficient AD •Durable goods jobs are impacted the most. •These can be postponed because they can be repaired. •Cyclical unemployment is real unemployment. These jobs do come back Overstate or Understate? LRAS PL SRAS PL1 AD1 Y1 YF GDPR LRAS PL SRAS PL AD YF ___ output ___ employment ___ unemployment ___ PL GDPR The average unemployment rate in France, Germany, & Italy and Canada remained high. European labor markets are less flexible.
