Employment

Basic information every American should know…including you!

There will be a quiz at the end!

Who do we consider to be “workers” in the U.S.?

• Of the over 360 million Americans, only 157.4 million (bls,2008) are considered “workers” or members of the CIVILIAN LABOR FORCE

What are the needed qualifications to be part of the Civilian Labor Force?

• People are considered to be part of the Civilian Labor Force if they are….
• 16 yrs. or older
• Not “Institutionalized”
• In school, the armed forces, nursing homes, prison, mental institution…all are “institutions.”
• If you are in one, you are not considered part of the Civilian Labor Force

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Civilian Labor Force

• Within the Civilian Labor Force of 167 million, some are considered employed and some are considered unemployed.

Employed members of the Civilian Labor Force are…

• People who are 16 years or older, not institutionalized, and have worked at a job, even if it is only one hour that week.
• Includes people who did not work during the week due to illness, bad weather, vacation, or a labor dispute.

Unemployed members of the Civilian Labor Force are…

• People who are 16 years or older, not institutionalized, and who do not have a job but are actively looking for work in the last four weeks.

What are you “considered” if you don’t have a job and are not looking for a job but are willing and able to work?

• A “Discouraged Worker”….(actual technical term) and you are not part of the Civilian Labor Force and not counted as unemployed.
• You must be actively looking for a job to be considered part of the Civilian Labor Force!

How is the Civilian Labor Force measured in terms of employed and unemployed?

• The official rate of unemployment is based on a survey conducted by the Bureau of Labor Statistics (BLS) each month.

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• They sample 60,000 households, which reflect the characteristics of the U.S. pop.

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What types of unemployment are there?

• Frictional unemployment: arises from normal operation of the labor force-job terminations by employees, discharges, or relocation (you quit, get fired, or move) WE WILL ALWAYS HAVE THIS
• Cyclical unemployment: unemployment that arises from a slow down in the economy (you sell cars and during a recession nobody buys cars…and you lose your job.)
• Structural unemployment: caused by an imbalance between skills possessed by workers and skills demanded in the labor market.

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What do we consider “Full Employment”

• Because of Frictional Unemployment, “Full Employment” is when the unemployment rate is around or under 4.5% (because 4.5% is a reasonable percent of the labor force in flux due to getting fired, quitting, or moving)

Answer the following questions on a separate sheet of paper and give it to your wonderful teacher!

• 1. Everyone in America is considered either employed or unemployed T or F
• 2. What two major qualifications do you need to be part of the Civ. Lab. Force?
• 3. What is the key to slipping from “unemployed” to “discouraged?”
• Continue on next slide!

More Quiz Fun!!

• 4. Explain in a complete sentence how our country measures employment and unemployment.
• 5. Of the three different types of unemployment (frictional, cyclical, and structural) which is “normal” even when the economy is fully maximizing the labor force? WHY?
• 6. What percentage of unemployment do we consider “full employment?”