Unemployed

Definition

Unemployed refers to individuals who are actively seeking work but are currently without a job. It is a key indicator of the economic health and labor market conditions of an economy.

5 Must Know Facts For Your Next Test

1. The unemployment rate is calculated as the number of unemployed individuals divided by the labor force, then multiplied by 100.
2. There are different types of unemployment including frictional, structural, and cyclical.
3. High unemployment rates can lead to lower consumer spending and affect overall economic growth.
4. Unemployment benefits are often provided by governments to support those who are out of work while they search for new employment.
5. The natural rate of unemployment includes frictional and structural unemployment but excludes cyclical unemployment.

Review Questions

• How is the unemployment rate calculated?
• What are the different types of unemployment?
• Why might high unemployment rates negatively impact economic growth?

Related terms

laborForce: The total number of people employed or actively seeking employment.

frictionalUnemployment: Short-term joblessness that occurs when people are between jobs or entering the workforce for the first time.

cyclicalUnemployment: Joblessness resulting from economic recessions and downturns in the business cycle.