The Big QuestionsThe Big Questions

►How are we doing?How are we doing?►What’s the best way to show a group’s What’s the best way to show a group’s

employment condition?employment condition?►Why do people lose their jobs?Why do people lose their jobs?

Game PlanGame Plan►Vocab/Partner ActivityVocab/Partner Activity►““Determine the Unemployment Rate” Determine the Unemployment Rate”

ChallengeChallenge► InfoInfo

1-2 slides of notes1-2 slides of notes graphsgraphs web siteweb site videovideo

►Partner/Role Play--What’s the town’s U rate?Partner/Role Play--What’s the town’s U rate?►Types of U, and skitsTypes of U, and skits

With a PartnerWith a Partner

Employed Unemployed Labor Employed Unemployed Labor ForceForce

►What do YOU think each of the above What do YOU think each of the above words means?words means?

►Write down your answers, and be Write down your answers, and be prepared to share.prepared to share.

In this country, there are…In this country, there are…►50 people50 people►6 of them are children6 of them are children►2 are prisoners2 are prisoners►12 are stay-at-home parents12 are stay-at-home parents►5 of them are homeless but are not 5 of them are homeless but are not

looking for jobs looking for jobs ►20 are working various jobs20 are working various jobs►5 are out of work, but are looking for 5 are out of work, but are looking for

work work ►What is the unemployment rate????What is the unemployment rate????

In this country, there are…In this country, there are…► 50 people 50 people These Don’t CountThese Don’t Count► 6 children 6 children ► 2 prisoners2 prisoners► 12 stay-at-home 12 stay-at-home

parentsparents► 5 are homeless but 5 are homeless but

are are ► These CountThese Count not looking for jobs not looking for jobs ► 20 are working various jobs20 are working various jobs

► 5 are out of work, but are looking for work5 are out of work, but are looking for work

►Labor Force=____ Labor Force=____ ►Unemployment Rate = 5/25 = 20%Unemployment Rate = 5/25 = 20%

To be considered To be considered “unemployed”“unemployed”

►you have to be looking for a job.you have to be looking for a job.

►Who is unemployed in this list?Who is unemployed in this list? a stay-at-home-moma stay-at-home-mom a ten yr-old kida ten yr-old kid a guy who, after looking for a job for 6 a guy who, after looking for a job for 6

months, gave up and moved in with his months, gave up and moved in with his parentsparents

a retired persona retired person

Measuring UnemploymentMeasuring Unemployment

► # unemployed (must be looking) # unemployed (must be looking) ► totaltotal civilian labor force civilian labor force

►civilian means “not military”civilian means “not military”► labor force = employed + unemployedlabor force = employed + unemployed

(all the people either working or looking for (all the people either working or looking for work)work)

Measuring UnemploymentMeasuring Unemployment

►The civilian labor force doesn’t include:The civilian labor force doesn’t include: military personnel (why?)military personnel (why?) people in mental institutionspeople in mental institutions prisonersprisoners people under 16people under 16

►For month-to-month numbers, most For month-to-month numbers, most economists look at non-farm payroll economists look at non-farm payroll unemployment. Why?unemployment. Why?

RGDP

Unemployment Rate

Google UnemploymeGoogle Unemployment Ratent Rate

The Unemployment RateThe Unemployment Rate►understatesunderstates unemployment unemployment ►doesn’t include:doesn’t include:

discouraged workersdiscouraged workers part-timers who part-timers who can’t find full-time workcan’t find full-time work

16.8

9.7

9.6%

17%

CEA Chair Talks U. RaCEA Chair Talks U. Ratete

Calculate the Town’s Calculate the Town’s Unemployment Rate!Unemployment Rate!

►Work with your partner to determine this town’s unemployment rate.

►Write down all of your calculations, along with the answer.

►Put both of your names on the paper.

AssignmentAssignment

►Take a moment to think of a reason Take a moment to think of a reason why someone might lose their job.why someone might lose their job.

►Be specific!Be specific!

Kinds of UnemploymentKinds of Unemployment

►FrictionalFrictional: between jobs (: between jobs (it’s it’s personalpersonal))►StructuralStructural: changes in consumer tastes : changes in consumer tastes

or industry operationsor industry operations►CyclicalCyclical: changes in business cycle: changes in business cycle►SeasonalSeasonal: changes in weather/seasons: changes in weather/seasons

AssignmentAssignment

► Compose a skit in which someone is losing their job. ► You will act out your skits in front of the class. ► The class will identify which type of unemployment

your skit represents. ► Join with another group of two near you. ► Each group will compose one skit. ► Each group will draw a type of unemployment from

the hat. This will be the type of unemployment you write your skit about.

► You will have about fifteen minutes to write your short skits.

Other Measures of UnOther Measures of Unemploymentemployment

Unemployment Rate U-6

Unemployment Rate Unemployment Rate ImperfectionsImperfections

►With your partner, answer these With your partner, answer these questions, and be prepared to share:questions, and be prepared to share:

► Is the unemployment rate you Is the unemployment rate you calculated a good indicator of the job calculated a good indicator of the job situation in town? Why/why not?situation in town? Why/why not?

►Do you think this number makes Do you think this number makes things seem better than they are or things seem better than they are or worse than they are? If so, why? worse than they are? If so, why?

Bell RingerBell Ringer

►Grab a marker board and marker, and Grab a marker board and marker, and draw a businesses cycle graph draw a businesses cycle graph representing the United States representing the United States economy. For the time frame, start your economy. For the time frame, start your graph at 2005, and end it at 2015. Draw graph at 2005, and end it at 2015. Draw your prediction as to what the country’s your prediction as to what the country’s economy will look like over the next five economy will look like over the next five years. Mark the point on the graph years. Mark the point on the graph where you believe we are at now.where you believe we are at now.