UNEMPLOYMENT

 What is Unemployment?
Unemployment occurs when a person who is
activity searching for employment is unable to
find work. Unemployment is often used as
measure of the health of the economy. The most
frequent measure of unemployment is the
unemployment rate, which is the number of
unemployed people divided by the number of
people in the labor force.
  Unemployment rate

Number of unemployed people

Unemployment rate= ---------------------------------------------X100
Number of people in the labor force

-When Labor force is the sum of employed &

unemployed. Unemployment rate is the percentage of
adults who are in the labor force without a job.
 How unemployment can result from
minimium-wage laws?
 How unemployment can arise from
bargaining between firms and unions?
 How unemployment results when
firms choose to pay efficiency wages?