ABSTRACT
This chapter discusses various theories about how labor markets work and offers some perspectives on how employment in the future might look, for workers and for society at large. The unemployment rate represents the fraction of the officially defined labor force that is made up of people who are not currently working at paid jobs but are currently looking for and available for paid work. The unemployment rate reported in the media is often “seasonally adjusted.” The Bureau of Labor Statistics also estimates unemployment rates for various demographic groups, occupations, industries, and geographical areas. Some of the most important issues in the economy relate to questions of employment, unemployment and wages. Structural unemployment arises when there is a widespread mismatch between, on the one hand, the kinds of jobs being offered by employers and, on the other, the skills, experience, education, or geographic location of potential employees.
