Question on Video 8 #7
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I had a clarifying question on video 8: (edited) Does the measure of employment not include part-time workers? How would it adjust when we use the U6 measure of unemployment? |
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Yes, the standard measure of employment includes part-time workers. And the standard measure of unemployment (U3) does not include them. The U6 measure of unemployment, on the other hand, does include part-time workers. It therefore overlaps with the standard employment measure. The U6 measure of unemployment also overlaps with the standard out-of-the-labor-force measure, as both include discouraged and marginally attached workers. With the U6 measure of unemployment, it is not correct any more to use the identity that employment + unemployment + out-of-the-labor-force = civilian population. This identity is only true with U3. |
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Yes, the standard measure of employment includes part-time workers. And the standard measure of unemployment (U3) does not include them. The U6 measure of unemployment, on the other hand, does include part-time workers. It therefore overlaps with the standard employment measure. The U6 measure of unemployment also overlaps with the standard out-of-the-labor-force measure, as both include discouraged and marginally attached workers. With the U6 measure of unemployment, it is not correct any more to use the identity that employment + unemployment + out-of-the-labor-force = civilian population. This identity is only true with U3.