What is the cost of unemployed resources?
• What is inflation? Why is it a problem? • What is frictional unemployment? And why is it not harmful? Unemployment is the number of adults (16 and over) who are willing able to work and actively seeking jobs though they could not find one. The population is divided into three groups: those under age 16 or institutionalized those not in the labor force, which includes the sum of the employed and the unemployed. Labor force = all U.S. residents residents under 16 years of age institutionalized adults – adults not looking for work. You are in the labor force if you are working or actively seeking work but did not find one. Therefore, labor force is the sum of the employed and the unemployed. In 1997 total population 267,90,000 Less under 16 and/or institutionalized -64,767,000 Less not in labor force -66,837,000 Equals labor force 136,297,000 Employed 129,558,000 Unemployed 6,739,000 Unemployment rate = (6,739,000)/(136,297,000)*100=4.9%. Full time students, homemakers and retiree are e
