Unemployment
Definition
Unemployment refers to a situation where people who are willing and able to work cannot find jobs.
Analogy
Imagine you're at a party with ten people but there are only seven slices of pizza. Those three people without slices represent unemployment in an economy - they want pizza (a job), but there isn't enough for everyone.
Related terms
Recession: A period when economic activity slows down significantly for at least six months.
Inflation: The rate at which general prices for goods or services rise, eroding purchasing power.
Labor Force Participation Rate: The percentage of working-age population either employed or actively looking for work.
"Unemployment" appears in:
Subjects (2)
Study guides (1)
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