Consumer price index (cpi)

Macroeconomics TOPIC: Economic fluctuations Unemployment

Table of contents

• Unemployment concept and measurement of unemployment rate
• Economic consequences of unemployment. A. Oaken's law
• Economic cycles and causes of economic fluctuations

In economics, a discouraged worker is a person of legal employment age who is not actively seeking employment or who has not found employment after long-term unemployment, but who would prefer to be working. This is usually because an individual has given up looking, hence the term "discouraged".

Three main types of unemployment

- Workers also may quit their jobs to change careers or to move to different parts of the country

• An increase in frictional unemployment means more workers are moving toward better positions


- Others might decide to leave the workforce for personal reasons such as retirement, pregnancy, or sickness.
They drop out of the labor force. When they return and start looking again,
they're counted as part of frictional unemployment.

• Graduating students are a good illustration of frictional unemployment. They join the labor force and are unemployed until they find work.
• Parents who rejoin the workforce after taking time to stay home and raise their children are another example. They all join the count in the frictional

What Causes Structural Unemployment?

Key Takeaways

• Key Takeaways
• Structural unemployment is when the skills unemployed workers have don’t match the skills needed by employers. 
• Older people are affected by structural unemployment more than their younger counterparts. 
• It’s hard to address structural unemployment because, while jobs can be added, typically they are low quality. 
• The Great Recession made structural unemployment worse
• It occurs when an underlying shift in the economy makes it difficult for some people to find jobs. It is harder to correct than other types of Unemployment