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The Organisation for Economic Co-operation and Development defines the employment rate as the employment-to-population ratio. [1] This is a statistical ratio that measures the proportion of a country's working age population (statistics are often given for ages 15 to 64 [2][3]) that is employed. This includes people that have stopped looking ...
Beveridge curve. A Beveridge curve, or UV curve, is a graphical representation of the relationship between unemployment and the job vacancy rate, the number of unfilled jobs expressed as a proportion of the labour force. It typically has vacancies on the vertical axis and unemployment on the horizontal. The curve, named after William Beveridge ...
Sahm rule. In macroeconomics, the Sahm rule, or Sahm rule recession indicator, is a heuristic measure by the United States' Federal Reserve for determining when an economy has entered a recession. [1] It is useful in real-time evaluation of the business cycle and relies on monthly unemployment data from the Bureau of Labor Statistics (BLS).
Economic activity rate, EAR (or labor force participation rate, LFPR), is the percentage of the population, both employed and unemployed, [1] that constitutes the workforce, regardless of whether they are currently employed or job searching. [2] This figure is a measure of the degree of success of the economy in engaging the population in some ...
The natural rate of unemployment is a combination of frictional and structural unemployment that persists in an efficient, expanding economy when labor and resource markets are in equilibrium. Occurrence of disturbances (e.g., cyclical shifts in investment sentiments) will cause actual unemployment to continuously deviate from the natural rate ...
Marginal cost (MC) is the change in total cost per unit change in output or ∆ C /∆ Q. In the short run, production can be varied only by changing the variable input. Thus only variable costs change as output increases: ∆ C = ∆ VC = ∆ (wL). Marginal cost is ∆ (Lw)/∆ Q. Now, ∆ L /∆ Q is the reciprocal of the marginal product of ...
Okun's law is an empirical relationship. In Okun's original statement of his law, a 2% increase in output corresponds to a 1% decline in the rate of cyclical unemployment; a 0.5% increase in labor force participation; a 0.5% increase in hours worked per employee; and a 1% increase in output per hours worked (labor productivity).
Put another way, the full employment and the absence of involuntary unemployment correspond to the case where the real wage equals the marginal cost to workers of supplying labor for hire on the market (the "marginal disutility of employment"). That is, the real wage rate and the amount of employment correspond to a point on the aggregate ...