chapter 5 Flashcards
Labour Force:
The sum of employed and unemployed workers in the economy
Unemployment Rate:
The percentage of the labour force that is unemployed
Labour Force Survey
Statistics Canada conducts the LFS every month to classify if they are employed, unemployed or not in the work labor force
Employed:
paid work, unpaid work for family business. work for themselves or temporarily away from job.
Unemployed:
Not currently working but available for work and has been looking for a job over the past 4 weeks
Not In The Labour Force:
If neither employment or unemployment rules apply
Unemployment Rate Formula:
of unemployed/Labour force X 100%
Labour force participation Rate formula:
Labour force/working age population X 100%
Employment Population ratio formula:
Employment/working age population X 100%
Problems With Measuring Unemployment Rate
It may understate unemployment;
- should stats candy exclude discouraged workers
- full time vs part time
It may overstate employment;
- people lie about working
- people claim to be unemployed to evade taxes
Frictional Unemployment:
short term unemployment that arises from the process of matching workers with jobs
Structural Unemployment:
Long term unemployment that arises form a persistent mismatch between the skills and attributes of workers and requirements of the job
Cyclical Unemployment:
Unemployment caused by a recession
Seasonal Unemployment
unemployment due to seasonal factors such as weather
Employment Insurance (EI)
Helps unemployed people spend more time searching for a job that suits their skills making the economy more productive
