Question

The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance. a. True b. False

Answer 1

Answer:

FALSE

Explanation:

A person is considered unemployed if he / she does not have a job and has searched for a job within the last 4 weeks

Unemployment rate = (number of unemployed / labour force) x 100

To collect data on unemployment, The Bureau of Labor Statistics conducts a survey every month known as the Current Population Survey (CPS).

types of unemployment

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.  

The geologist lost his hob permanently due to increase in wages (polices)

Frictional unemployment:  the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.

Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom