Labor Economics - Unemployment Concepts

The percentage of the labor force that is unemployed, calculated by dividing the number of unemployed individuals by the total labor force (employed + unemployed).

The total number of people who are either employed or unemployed. It includes individuals actively seeking work, regardless of their employment status.

The average unemployment rate that persists over time, determined by the flow of individuals between employment, unemployment, and nonmarket sectors.

The likelihood of an individual moving between different labor market states, such as transitioning from employment to unemployment, unemployment to employment, or entering or exiting the labor force.

Individuals who become unemployed due to layoffs, plant closures, or other involuntary job separations.

Workers who voluntarily leave their jobs, often to seek better opportunities, career changes, or personal reasons.

Individuals returning to the labor force after a period of absence, such as after raising children or pursuing education.

Individuals who are entering the labor market for the first time, typically recent graduates seeking their first job.

The length of time an individual remains unemployed, measured in weeks or months.

A type of unemployment that occurs naturally in a well-functioning economy, resulting from individuals transitioning between jobs or searching for new opportunities.

Unemployment that arises from a mismatch between the skills and qualifications of workers and the requirements of available jobs.

A type of structural unemployment resulting from technological advancements that replace jobs previously held by humans.

Temporary unemployment experienced by workers in industries where employment is short-term or on a day-to-day basis, like construction or seasonal work.

Unemployment that occurs during specific seasons or periods of the year, often due to changes in demand or production cycles, typically in industries like agriculture or tourism.

Unemployment that arises during periods of economic recession or depression, caused by a decline in overall economic activity and demand for labor.

Persistent and long-term unemployment that affects a country for extended periods, often caused by structural issues like lack of resources or skills development.

The minimum wage an unemployed worker is willing to accept for a job offer, reflecting their expectations and search costs.

A government program that provides temporary financial assistance to workers who are laid off or unemployed through no fault of their own.

A theory that suggests that paying workers above-market wages can improve their productivity and reduce labor costs, leading to increased efficiency for firms.

Unemployment that exists when qualified workers are willing to work at the prevailing wage but cannot find a job.

A curve that shows the relationship between the wage rate and the number of workers willing to work without shirking, considering the cost of potential unemployment.

Unwritten agreements between workers and firms that establish terms like wages and job security, often influenced by the long-term nature of labor relationships.

A historical relationship between inflation and unemployment rates, generally showing a negative correlation, suggesting a trade-off between the two variables.

The average rate of unemployment that exists in a well-functioning economy, even in the long run, influenced by structural and frictional factors.

Shifts in population characteristics like age, gender, or race, which can affect the natural rate of unemployment through changes in labor force participation.

Transformations in the industries and technologies within an economy, such as automation, globalization, or technological innovation, which can lead to structural unemployment and shifts in the natural rate.

The percentage of the working-age population (ages 16-64) who are actively participating in the labor force by either working or seeking work.