Page 163 - Krugmans Economics for AP Text Book_Neat

figure 12.2

Alternative Measures of Percentage of
labor force
Unemployment, 1994–2010
18%
The unemployment number usually quoted in
the news media counts someone as unem-
16
ployed only if he or she has been looking for
work during the past four weeks. Broader
14 Section 3 Measurement of Economic Performance
measures also count discouraged workers,
marginally attached workers, and the under- 3. ...plus marginally 4. ...plus involuntary
12 attached workers part-time workers
employed. These broader measures show a
higher unemployment rate—but they move
10
closely in parallel with the standard rate.
Source: Bureau of Labor Statistics.
8
6

4
2. ...plus
1. Unemployment discouraged
2 rate... workers

1994 1996 1998 2000 2002 2004 2006 2008 2010

Year

it.) So even at a time when the overall unemployment rate was relatively low, jobs were
hard to find for some groups.
So although the unemployment rate is not an exact, literal measure of the per-
centage of people unable to find jobs, it is a good indicator of overall labor market
conditions. The ups and downs of the unemployment rate closely reflect economic
changes that have a significant impact on people’s lives. Let’s turn now to the causes
of these fluctuations.

figure 12.3

Unemployment Rates of Unemployment
Different Groups, 2007 rate
35%
Unemployment rates vary greatly among dif- 31.2%
ferent demographic groups. For example, al- 30
though the overall unemployment rate in
August 2007 was 4.7%, the unemployment 25
rate among African - American teenagers was 20
31.2%. As a result, even during periods of 15 14.4%
low overall unemployment, unemployment
remains a serious problem for some groups. 10 7.7%
Source: Bureau of Labor Statistics. 4.7%
5
0
Overall African- White African-
American teenager American
teenager

module 12 The Meaning and Calculation of Unemployment 121