【正文】 been exceptionally slow. ? This was called “the jobless recovery”. The labor market also recovered slowly following the 199091 recession. 43 CHAPTER 28 UNEMPLOYMENT What do we mean by “jobless recovery”? 44 CHAPTER 28 UNEMPLOYMENT Bernanke’s list of explanations ? Increases in benefit costs to employers has retarded hiring. ? firms are slow to begin hiring because of rising uncertainty. ? the September 11 attacks。 ? We have relatively shorter and milder recessions。 ? Job creation rate. ? Countercyclical variables: those that move against the cycle。 jobs, which would reduce frictional unemployment. 22 CHAPTER 28 UNEMPLOYMENT Explaining the Natural Rate of Unemployment: A Summary The natural rate of unemployment consists of ? frictional unemployment ? it takes time to search for the right jobs ? occurs even if there are enough jobs to go around ? structural unemployment ? when wage is above eq’m, not enough jobs ? due to min. wages, labor unions, efficiency wages In later chapters, we will learn about cyclical unemployment, the shortterm fluctuations in unemployment associated with business cycles. 23 CHAPTER 28 UNEMPLOYMENT CHAPTER SUMMARY ? The unemployment rate is the percentage of those who would like to work who do not have jobs. ? Unemployment and labor force participation vary widely across demographic groups. ? The natural rate of unemployment is the normal rate of unemployment around which the actual rate fluctuates. Cyclical unemployment is the deviation of unemployment from its natural rate, and is connected to shortterm economic fluctuations. 24 CHAPTER 28 UNEMPLOYMENT CHAPTER SUMMARY ? The natural rate includes frictional unemployment and structural unemployment. ? Frictional unemployment occurs when workers take time to search for the right jobs. ? Structural unemployment occurs when above equilibrium wages result in a surplus of labor. ? Three reasons for aboveequilibrium wages include minimum wage laws, unions, and efficiency wages. 25 CHAPTER 28 UNEMPLOYMENT Business Cycles: Introduction ? Over the long run, real GDP grows about 3% per year on average. ? In the short run, GDP fluctuates around its trend. ? recessions: periods of falling real ines and rising unemployment ? depressions: severe recessions (very rare) ? Shortrun economic fluctuations are often called business cycles. 26 CHAPTER 28 UNEMPLOYMENT Three Facts About Economic Fluctuations 2 , 0 0 03 , 0 0 04 , 0 0 05 , 0 0 06 , 0 0 07 , 0 0 08 , 0 0 09 , 0 0 01 0 , 0 0 01 1 , 0 0 01965 1970 1975 1980 1985 1990 1995 2020 2020$ The shaded bars are recessions . real GDP, billions of 2020 dollars FACT 1: Economic fluctuations are irregular and unpredictable. 27 CHAPTER 28 UNEMPLOYMENT 2004006008001 , 0 0 01 , 2 0 01 , 4 0 01 , 6 0 01 , 8 0 01965 1970 1975 1980 1985 1990 1995 2020 20