Ch. 28

Chapter 28 is about unemployment. It is a pretty easy chapter to understand, and overall makes sense. It describes what unemployment is, who experiences it, how it is calculated, and what causes it. Unemployment is measured by the people who are not employed but are available for work, or looking for work. Employed people include part-time and full-time workers, and those on temporary leave, such as those on vacation or illness or bad weather. The unemployment rate is calculated by the amount of people unemployed divided by the people in the labor force. The labor force is measured by those employed and unemployed; the labor force participation ratio is calculated by the labor force divided the adult population (starting from the age of 16). The unemployment rate is not perfect, as the line between those who are still looking for work and those who leave the labor force can often blur, and discouraged workers may be available for work but stop looking because of lack of luck in finding one. Teenagers, or unskilled workers, experience the most unemployment. Unemployment is caused by various factors, such as changes in the labor demand due to falling and rising industries and markets, time spent in job search, and minimum wage and unions. When certain industries or companies fall, those working in it are left unemployed and must then look for a different job, so the unemployment rate rises during that time. Those currently looking for a job are in a job search, hoping to find a job that suits their needs and skills. Those receiving unemployment insurance can take more liberty in finding a job more suited for them because they receive weekly checks representative of 50% of their previous income up until about 26 weeks, as long as they prove they are looking for a job. Minimum wage and unions can cause a surplus of workers with a raise of wages, which leaves more people unemployed.