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Unemployment is the labor force seeking employment and unable to find it. The cost of unemployment can be measured by the deficiency in the potential output of a nation: both foregone production, income and consumption of needed goods. A less tangible, but more significant cost is present in the loss of social and cultural value of those unable to play an active role in society.
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Some of those who are unemployed have been laid off, while others are new entrants to the labor force, such as graduating young people and women, seeking their first jobs. |
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