Chp. 28

Chapter 28 is about the labor force, the total number of workers, including both the employed and the unemployed. The unemployment rate is the percentage of the labor force that is unemployed. On the other hand, labor-force participation rate is the percentage of the adult population that is in the labor force. The natural rate of unemployment is the normal rate of unemployment around which the unemployment rate fluctuates. Cyclical unemployment is the deviation of unemployment from its natural rate. However, discouraged workers are individuals who would like to work but have given up looking for a job. Types of unemployment are frictional unemployment(unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills) and structural unemployment (unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one). A job search is the process by which workers find appropriate jobs given their tests and skills. Unemployment insurance is a government program that partially protects workers' incomes when they become unemployed. A union is a worker association that bargains with employers over wages, benefits, and working conditions. And collective bargaining is the process by which unions and firms agree on the terms of employment. A strike is the organized withdrawal of labor form a firm by a union. Efficiency wages is above-equilibrium wages paid by firms to increase worker productivity. Trends noticed are high wages can improve worker health, lower worker turnover, raise worker quality, and increase worker effort.