Lesson Plan

• Define employment, unemployment, and full employment in economic terms.
• Explain how to calculate the unemployment rate and interpret its meaning.
• Distinguish frictional and structural unemployment from the natural rate.
• Interpret a labour‑market diagram that shows equilibrium at full employment.
• Apply these concepts to assess the impact of government policies on the labour market.

• Projector or interactive whiteboard
• Slide deck with definitions and labour‑market diagram
• Printed worksheets for calculation practice
• Calculators (one per student)
• Whiteboard and markers
• Sticky notes for exit tickets

Begin with a brief news clip showing recent changes in the national unemployment rate to capture interest. Ask students what they already know about the terms “employment” and “unemployment” and how these relate to the labour force. Explain that by the end of the lesson they will be able to accurately define the key concepts, calculate the unemployment rate, and read a labour‑market diagram.

1. Do‑now (5 min): Students write the definitions of employment and unemployment from memory; share responses.
2. Mini‑lecture (10 min): Present formal definitions of employment, unemployment, full employment, and the natural rate; introduce the unemployment‑rate formula.
3. Guided practice (10 min): Work through a sample data set to calculate the unemployment rate; students complete the worksheet in pairs.
4. Diagram analysis (10 min): Display the labour‑market diagram; students label equilibrium, frictional and structural unemployment, and discuss full‑employment output.
5. Group discussion (10 min): Teams consider how a fiscal stimulus or tax change could shift the diagram; each group reports one effect.
6. Check for understanding (5 min): Quick Kahoot quiz or raise‑hand questions covering the key definitions and calculations.

Summarise the three core concepts and revisit the unemployment‑rate calculation using the earlier example. Students write one takeaway on a sticky note as an exit ticket. For homework, assign a short problem set that requires calculating unemployment rates from different scenarios and a brief reflection on how government policy might influence full employment.