Economics A100 Lecture Notes - Lecture 9: World Bank High-Income Economy, Uric Acid, Business Cycle
15 May 2020
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Is the number of unemployed persons divided by the number of persons in labor force. Unemployment is usually between 4%-6% when economy is strong. U-rate = 100 x (# of unemployed / labor force) Lf rate = 100 x (labor force / adult population) Labor force = employed + unemployed = 158. 9 million. U-rate = unemployed/labor force x 100 = 7. 8/158. 9 x 100 = 4. 9% Adult population = lf + not in lf = 158. 9 + 94. 5 = 253. 4 million. Rate = 100 x (lf/population) = 100 x (158. 9/253. 4) = 62. 7% Growth in size of population, labor force, globalization and new technology have no affect in the unemployment rate. Higher for african american and hispanics than whites. Higher for less educated than more educated. In the past, higher for women than men but in recent years, they are both similar. Us unemployment rates have compared favorably with unemployment rates in most other high income economies.
