Unemployment

Unemployment: % of people that don't have jobs but they're in the labor force.
In Labor Force- have to be employed + unemployed

No labor force:
Kids
Military
Mentally insane
Prison
Stay at home moms and dads
Full time students
Retirees
Discouraged workers= job lookers with no job

Employed: 16 years or older with job
Unemployed: 16 years or older with no job & actively looking for a job for 2 weeks

Unemployment rate: # of unemployment x 100
                                          Labor force (# or unemployed + # of employed)

Types of Unemployment:
1. Seasonal
2. Frictional
3. Structual
4. Cyclical

Full employment: (Natural rate of unemployment) = 4-5%
Okun's Law: for every 1% of unemployment above the NRU causes a 2% decline in Real GDP.