Ch. 24

• What does "employed" refer to in employment statistics?

  People working for firms or self-employed
• Who are considered economically inactive?

  People of working age not looking for work
• What are discouraged workers?


  People unable to find work and not searching
• What is the definition of the workforce?

  Economically active people in employment or unemployed
• Who are classified as unemployed?

  Economically active people not in employment
• What is full employment?

  All willing and able workers find jobs
• What does real wage inflexibility imply?

  Persistent unemployment if wages don't adjust
• What is the claimant count of unemployment?

  Number of people claiming JSA each month
• How is the ILO unemployment rate measured?

  Percentage of workforce without jobs but available
• What is frictional unemployment?

  Unemployment during job search between jobs
• What causes structural unemployment?

  Changes in economic activity patterns
• What is cyclical unemployment?

  Unemployment during economic downturns like recessions
• What is demand-deficient unemployment?

  Unemployment due to low aggregate demand
• What is seasonal unemployment?

  Unemployment during low demand seasons
• What is voluntary unemployment?

  Choosing not to accept a job at wage rate
• What is involuntary unemployment?

  Wanting a job but unable to find one