The Labor Market: Basic Concepts
The Department of Labor and Employment (DOLE) prepare reports regarding the results of a household survey that
provides an estimate of the number of people with a job, the employed (E), as well as the number of people who are looking for work but
cannot find a job, the unemployed (U). The labor force (LF) is the number of employed plus unemployed:
LF = E + U
The unemployment rate is the number of people unemployed as a percentage
of the labor force:
Unemployment rate = unemployed / labor force
To repeat, to be unemployed, a
person must be out of a job and actively looking for work. When a person stops
looking for work, he or she is considered out
of the labor force and is no longer counted as unemployed. It is important to realize that
even if the economy is running at or near full capacity, the unemployment rate
will never be zero.
For Students in ECON 106 kindly download the PDF copy of our lecture, please click the link below:
Click this----->>>>>>LABOR MARKET IN THE MACROECONOMY
For comments and questions, kindly post it below.
