Introduction

Module 4 – Measuring Unemployment & Labor Force Participation

Module Introduction

The rate of unemployment is the second major indicator of economic performance, which provides information about how labor market conditions have changed in an economy and how these changes affect other markets.

This module will discuss how the unemployment rate is defined and computed; review labor market indicators, trends, and fluctuations in the labor market; explore the types of unemployment; define full employment; explore the influences on the natural unemployment rate; and explain the relationship between unemployment and real GDP using the output gap. (1)

Learning Objectives

  • Define how the unemployment rate and the labor force participation rate are measured in the United States.
  • Describe the trends and fluctuations of unemployment rate and the labor force participation rate in the United States.
  • Describe the sources and types of unemployment.
  • Define the natural rate of unemployment.
  • Explain the relationship between unemployment and real GDP. (1)

Reading

  • Learning Unit

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