What you will learn
in this Module:
118 section 3 Measurement of Economic Performance
How Important is Oligopoly?
measured
- How the unemployment rate
is calculated - The significance of the
unemployment rate for the
economy - The relationship between the
unemployment rate and
economic growth
Module 12
The Meaning and
Calculation of
Unemployment
The Unemployment Rate
One of the most important issues in the 2008 presidential election was the growing
unemployment rate. Figure 12.1 shows the U.S. unemployment rate from 1948 to the
early part of 2010; as you can see, the labor market hit a difficult patch starting in
figure 12.1
The U.S. Unemployment
Rate, 1948–2010
The unemployment rate has fluctuated
widely over time. It always rises during re-
cessions, which are shown by the shaded
bars. It usually, but not always, falls during
periods of economic expansion.
Source:Bureau of Labor Statistics; National Bureau of
Economic Research.
12%
10
8
6
4
2
Unemployment
rate
Year
1948 1960 1970 1980 1990 2000 2010