ECO 105 Chapter Notes - Chapter 17: Musical Chairs, Unpaid Work
23 May 2016
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The labor market is like a gam of musical chairs & the ppl with the least education usually end up w/out a chair. When there"s debate about what the unemployment problem is, it isn"t surprising that there"s also debate about how to measure it. Labor force: ppl who are willing & able to work. Calculating the unemployment rate: measured by dividing # of unemployed individuals by # of ppl in the civilian labor force & multiplying by 100: ex: if total unemployment stands at 12 million & labor force stands at. Result is the potential workforce: # of unemployed can be calculated by subtracting # of employees from labor force. Employed people are defined as: if they work @ a paid job or if they are unpaid workers in an enterprise opened by a family member. Labor force participation rate: measures the labor force as a % of the total population at least 16 yrs old.
