What is unemployment? the percent of people in the labor force who want a job but are not working

Work at least 1 hour a month considered employ
Temporary absent framework means your employ
Part time workers

Not in the labor force

• kids
• full time students 
• retirees 
• military personnel 
• mental Institution 
• jail 
• stay at home Dad/mom
• the discourage 

Unemployment rate = # of unemployed/ labor force ( employed plus unemployed) x100 

Standard 4-5%

4 types of Unemployment 

1) fictional unemployment  

"temporarily unemployment" or being between jobs 

skills but they aren't working

2) Seasonal unemployment

this specific type of fictional unemployment is due to time of year and the nature of the job

3) Structural unemployment 

changes in the structure of the labor force make some skills obselete 

works DO NOT have transferable skills and these jobs will never come back  

The permanent loss of these jobs is called "creative destruction" 

4) Cyclical employment 

employment that results from economic downtruns (recessions) 

as a demand for goods and services falls demand for labor 

frictional plus structural equals NRU (4-5%)

Oakum's law

when employment rises 1 percent above the natural rate GDPS falls by about 2 percent