17
FIGURE 2.1 Labor Force Status of the U.S. Adult Civilian Population, June 2004
FIGURE 2.1 Labor Force Status of the U.S. Adult Civilian Population, June 2004
Labor Market Definitions
Population: Group that can voluntarily work
Broadest definition: Civilian noninstitutional population aged 16 and over
Population =
In Labor Force + Not in Labor Force
FIGURE 2.1 Labor Force Status of the U.S. Adult Civilian Population, June 2004
Labor Force Participation Rate= (LF/P)*100
= (147/223)*100
= 66%
P
LF
Labor Market Definitions
Labor Force: Employed + unemployed
Employed:
worked at least 1 hour for pay; or
15 hours for family enterprise without pay; or
Temporarily not at work for various personal reasons
Unemployed: Not employed but actively seeking work
FIGURE 2.1 Labor Force Status of the U.S. Adult Civilian Population, June 2004
Unemployment rate = (U/LF)*100
= (8.2/147.3)*100
= 5.6%
U
LF
FIGURE 2.1 Labor Force Status of the U.S. Adult Civilian Population, June 2004
Employment rate = (E/P)*100
= (139/223.2)*100
= 62.3%%
E
P
Wage adjustments
• Adjust slowly downward– Real wages rose in the Great Depression– White Collar workers in the 2001 Recession
Adjust rapidly upward– Alaska pipeline– 1970s Coal boom
Wall Street Journal, August 13, 2003
Carrington, William J. “The Alaskan Labor Market During the Pipeline Era.” Journal of Political Economy 104 (February 1996):186-218.
Alaskan Labor Market
Carrington, William J. “The Alaskan Labor Market During the Pipeline Era.” Journal of Political Economy 104 (February 1996):186-218.
Alaskan Labor Market
Carrington, William J. “The Alaskan Labor Market During the Pipeline Era.” Journal of Political Economy 104 (February 1996):186-218.
Alaskan Labor Market
Carrington, William J. “The Alaskan Labor Market During the Pipeline Era.” Journal of Political Economy 104 (February 1996):186-218.
Alaskan Labor Market
Black, Dan, Terra McKinnish and Seth Sanders. “The Economic Impact of the Coal Boom and Bust.” Economic Journal 115 (April 2005): 449-476.
Black, Dan, Terra McKinnish and Seth Sanders. “The Economic Impact of the Coal Boom and Bust.” Economic Journal 115 (April 2005): 449-476.
Annual Response to 10% standardized shock to labor demandEmployment Population Employment
rateCoal Region 4.50% 1.60% 1.10%
Alaska 6.80% 1.60% 1.90%
Black, Dan, Terra McKinnish and Seth Sanders. “The Economic Impact of the Coal Boom and Bust.” Economic Journal 115 (April 2005): 449-476.
