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.