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Recall: Another economic goal of Canada is full employment
Labour Force Survey Every month, Stats Canada keeps takes a monthly
survey of 53 000 households (labour force population) and keeps track of the workforce
Labour Force: all people who either have a job or are actively seeking employment
Participation Rate: the percentage of the entire labour force population that makes up the labour force
9.2 Unemployment
Unemployment Rate: number of unemployed people in the labour force as a percentage of the entire labour force
In 2010, Canada’s labour force was 18.5251 million people 17.041 million people employed & 1.4841 million not
employed Thus, unemployment rate was 8.0%
The Official Unemployment Rate
Unemployment rate calculation leaves room for error What about factors such as:
Underemployment Workers being underutilized, either as part-time workers,
or by working at jobs not appropriate to their skills or education
Discouraged workers Unemployed workers who have given up looking for work
Dishonesty People responding to a Stats Can survey may report they
are actively looking for work when in fact they are not
Drawbacks of the Official Unemployment Rate
Frictional Unemployment: unemployment due to being temporarily between jobs or looking for a first job
Structural Unemployment: unemployment due to a mismatch between people and jobs
Cyclical Unemployment: unemployment due to fluctuations in output and spending
Seasonal Unemployment: unemployment due to the seasonal nature of some occupations and industries
Types of Unemployment
Full Employment is the highest reasonable expectation of employment for the economy as a whole Defined in terms of a natural unemployment rate
Unemployment Insurance: assistance received during periods of unemployment (after having worked)
Minimum Wages: minimum wage has increased a great deal in the past few decades Stats Canada found: a 10% increase in minimum wage
reduced the unemployment rate of male teens by 1% and 2.7% for female teens
Full Employment
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