hubbard_econ01_ppt_20

CHAPTER 20: Unemployment and Inflation
The Household Survey Labor force The sum of employed and unemployed workers in the economy. Unemployment rate The percentage of the labor force that is unemployed. Discouraged workers People who are available for work, but who have not looked for a job during the previous four weeks because they believe no jobs are available for them.
HOUSEHOLD SURVEY
MAY JUNE CHANGE +163,000 –161,000 +1,000
ESTABLISHMENT SURVEY
MAY JUNE CHANGE 133,391,000 133,537,000 +146,000
Employed Unemployed Labor Force Unemployment Rate
Number of unemployed x 100 Labor Force
Labor force x 100 Working - age population
2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1st ed. 6 of 32
20 – 1 Duration of Unemployment
LENGTH OF TIME UNEMPLOYED Less than 5 weeks 5 to 14 weeks 15 to 26 weeks 27 weeks or more
PERCENTAGE OF TOTAL UNEMPLOYED 36.2% 31.8 14.1 17.8
Labor force x 100 = Labor force participation rate Working - age population
2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1st ed. 5 ring the Unemployment Rate and the Labor Force Participation Rate
CHAPTER 20: Unemployment and Inflation
The Household Survey The unemployment rate measures the percentage of the labor force that is unemployed:
7 of 32
20 - 1
CHAPTER 20: Unemployment and Inflation
What Explains the Increase in “Kramers?”
Why do more men seem to be adopting Kramer’s lifestyle?
2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1st ed.
2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1st ed. 3 of 32
Measuring the Unemployment Rate and the Labor Force Participation Rate
9 of 32
Measuring the Unemployment Rate and the Labor Force Participation Rate
CHAPTER 20: Unemployment and Inflation
How Long Are People Usually Unemployed?
Measuring the Unemployment Rate and the Labor Force Participation Rate
CHAPTER 20: Unemployment and Inflation
Problems with Measuring the Unemployment Rate Trends in Labor Force Participation
141,475,000 141,638,000 7,647,000 7,486,000
149,122,000 149,123,000 5.1% 5.0%
2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1st ed.
2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1st ed.
10 of 32
Measuring the Unemployment Rate and the Labor Force Participation Rate
20 - 1
1 LEARNING OBJECTIVE
CHAPTER 20: Unemployment and Inflation
What Happens If You Include the Military?
People on active military service are not included in the employment, labor force, or working-age population totals compiled in the BLS household survey. Suppose people in the military were included in these statistics.
20 - 3
Unemployment Rates in the United States by Demographic Group, June 2005
2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1st ed.
8 of 32
Measuring the Unemployment Rate and the Labor Force Participation Rate
CHAPTER 20: Unemployment and Inflation
Unemployment Rates for Demographic Groups
Number of unemployed x 100 = Unemployment rate Labor Force
The labor force participation rate measures the percentage of the working-age population that is in the labor force:
6
7
2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1st ed.
2 of 32
1 LEARNING OBJECTIVE
Measuring the Unemployment Rate and the Labor Force Participation Rate
CHAPTER 20: Unemployment and Inflation
The Establishment Survey: Another Measure of Employment
20 – 2 Household and Establishment Survey Data for May and June 2005
20 - 2
Trends in the Labor Force Participation Rates of Adult Men and Women Since 1948
2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1st ed.
LEARNING OBJECTIVES
2
3 4
5
…, the contract between Lucent and its union workers increased wages by less than the increase in prices expected by the firm and the workers.
11 of 32
Measuring the Unemployment Rate and the Labor Force Participation Rate
CHAPTER 20: Unemployment and Inflation
The Household Survey