Unemployment

• Labor force
• Number of people classified as employed or unemployed

• Unemployment
• Percentage of people in the labor force who wants a job but are not working.

• Employed
• Temporary leave from work, part-time employment, and one hour of each month.

• Unemployment
• Kids, full time students, retirees, military personal, stay at home moms and dads, mental institution, incarcerated people, and discourage workers
• Formula: Unemployed rate = Number of unemployed / number in labor force (unemployed and employed) x 100

• Standard unemployment rate is 4-5%
• 4 types of unemployment

1. Frictional Unemployment
1. "temporarily unemployed" or being between jobs
2. Or looking for a better job
3. High School looking for a job
2. Seasonal Unemployment 
1. Unemployment which is due to time of year and the nature of the job
2. Jobs will come back
3. Lifeguard, Santa Claus impersonator
3. Structural Unemployment
1. Changes in the structure of the labor force maybe some skills obselete.
2. Workers learn new skills to get a job.
4. Cyclical Unemployment
1. Unemployment that results from economics downturns (recessions)
2. Demand for goods and services falls demand for labor falls and workers are fired.

• Frictional + Structural = NPU (4-5%) - full employment
• Full employment means NO cyclical employment

• Okun's law
• Unemployment rises 1 percent above the natural rate, GDP falls by above 2%