上财 宏观经济学 PPT Macroeconomic --Chapter 22 monitoring jobs and inflations.pptVIP

Each month, we chart the course of unemployment as a measure of the health of the U.S. economy. How do we measure unemployment? What other data do we use to monitor the labor market? Having a job that pays a decent wage does not determine the standard of living; the cost of living also matters. So we also need to know: What the Consumer Price Index is? How it is measured? How it is used? Employment and Unemployment The U.S. economy is an incredible job-creating machine. In 2008, 146 million people had jobs, which was 15 million more than in 1998 and 31 million more than in 1988. But not everyone who wants a job can find one. On a typical day, 7 million people are unemployed. During a recession, this number rises and during a boom year it falls. At its worst, during the Great Depression, one in every four workers was unemployed. Employment and Unemployment Why Unemployment Is a Problem? Unemployment results in Lost production and incomes Lost human capital The loss of income is devastating for those who bear it. Employment benefits create a safety net but don’t fully replace lost wages, and not everyone receives benefits. Prolonged unemployment permanently damages a person’s job prospects by destroying human capital. Employment and Unemployment Current Population Survey The U.S. Census Bureau conducts a monthly population survey to determine the status of the U.S. labor force. The population is divided into two groups: 1. The working-age population—the number of people aged 16 years and older who are not in jail, hospital, or some other institution 2. People too young to work (under 16 years of age) or in institutional care Employment and Unemployment The working-age population is divided into two groups: 1. People in the labor force 2. People not in the labor force The labor force is the sum of employed and unemployed workers. Employment and Unemployment To be counted as unemployed, a person must be in one of the following three categories: 1. Witho