RECESSIONS AND UNEMPLOYMENT. “It’s a recession when your neighbor loses his job; it’s a...
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Transcript of RECESSIONS AND UNEMPLOYMENT. “It’s a recession when your neighbor loses his job; it’s a...
![Page 1: RECESSIONS AND UNEMPLOYMENT. “It’s a recession when your neighbor loses his job; it’s a depression when you lose your own.” -President Harry Truman.](https://reader036.fdocuments.net/reader036/viewer/2022072016/56649ee15503460f94bf18dd/html5/thumbnails/1.jpg)
RECESSIONS A
ND
UNEMPLOYM
ENT
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“It’s a recession when your neighbor loses his job; it’s a depression when you lose your own.”
-President Harry Truman
![Page 3: RECESSIONS AND UNEMPLOYMENT. “It’s a recession when your neighbor loses his job; it’s a depression when you lose your own.” -President Harry Truman.](https://reader036.fdocuments.net/reader036/viewer/2022072016/56649ee15503460f94bf18dd/html5/thumbnails/3.jpg)
LABOR FORCE
Does not include:1. People under 16 years
old2. People who cannot work3. People who have
stopped looking for work
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Is your retired grandfather unemployed?
No- he is not looking for work
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Is a woman who stays home with her kids unemployed?
No- she is not looking for work
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An aunt serving in the Armed Forces is posted in Afghanistan. Is she considered unemployed?
No- she is not a member of the civilian labor force because she is serving in the military
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A thief serving time in prison lost his job when he was convicted. Is he unemployed?
No- those serving time in prison are not in the adult population and hence not in the labor force
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Is a full time college student unemployed?
Not unless he or she is not working and looking for a job.
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Unemployment should not hit 0%
Why? Competition
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When the economy is strongest- unemployment should be from 3-5%
What is the unemployment rate right now?http://
data.bls.gov/pdq/SurveyOutputServlet
www.bls.gov (Bureau of Labor Statistics) they calculate unemployment rate
Right now the unemployment rate is 5.9%
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TYPES OF UNEMPLOYMENT
Structural
Industry becomes obsoleteWorkers with certain skills have nowhere to go
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Seasonal
Landscapers, farmers, tourism jobs
Downtimes of the year
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Frictional
People entering job market or have decided to leave a job to seek “Greener Pastures”
Largest segment of unemployment figure during periods of strong economy, high employment time
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Cyclical
Industry hit hard by downturn in the economy
Auto workers laid off during recessions
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http://pewsocialtrends.org/pubs/733/luxury-necessity-recession-era-reevaluations
(Luxury of Necessity- this is a fantastic article that goes through items that people originally reported as being a necessity, but in the recession, changed their opinion to say luxury and not necessary- I highly recommend reading this, and looking at the charts)
online.wsj.com/article/SB124096661843766403.html (you will have to copy and paste this to get to the site- article is about the Yankees lowering their prices for seats during the recession because it didn’t look good to have that many empty seats!)
http://www.goodhousekeeping.com/family/budget/deal-with-recession (This has all sorts of tips on how to save money during a recession, and even some career advice in a bad economy)