UnemploymentUnemployment• When persons 15 years old and over are actively seeking

work but do not have employment

Working-age populationthe country’s total population, excluding:• those under 15 years of age;• those living in the three territories or on aboriginal

reserves; and• full-time members of mental and penal institutions or

hospitals, and those in the armed forces

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Unemployment

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Total population 34.2Working-age population 27.7Labour force 18.5Employed 17.0Unemployed  1.5Source: Adapted from Statistics Canada CANSIM Database <http://cansim2.statcan.ca>, Tables 282-0002 and 051-0001.

Population and EmploymentCanada 2010 (millions)

UnemploymentLabour force• members of the working-age population, who are either

employed or unemployed

Employed• those who are in the labour force and hold paid

employment

Unemployed• those who are in the labour force and actively seeking

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Unemployment

Participation rate• members of the working-age population, who are either

employed or unemployed

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Participation rate = labour force x 100

working-age population

Canada’s participation rate for 2010:

18.5 x 100 = 66.8%

27.7

Unemployment

Unemployment rate• the percentage of those in the labour force who

do not hold paid employment

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Unemployment rate = # unemployed x 100

labour force

Canada’s unemployment rate for 2010:

1.5 x 100 = 8.1%

18.5

TABLE 4.3 Unemployment Rates, Canada

Selected Years 1993–2010

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Year Total (%) Male (%) Female (%)

1993 11.4 11.9 11.3

1996 9.6 9.9 9.3

2001 7.2 7.5 6.9

2006 6.3 6.5 6.12007 6.0 6.4 5.62008 6.1 6.6 5.72009 8.3 9.4 7.02010 8.0 8.7 7.2

Source: Adapted from Statistics Canada, CANSIM Database <http://cansim2.statcan.ca>, Table 282-0002.

TABLE 4.3 Unemployment by Province

2010

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Unemployment %Newfoundland and Labrador 14.4 Prince Edward Island 11.2 Nova Scotia 9.3New Brunswick 9.3Quebec 8.0Ontario 8.7CANADA 8.0British Columbia 7.6Alberta 6.5Manitoba 5.4Saskatchewan 5.2

Source: Adapted from Statistics Canada, CANSIM Database <http://cansim2.statcan.ca>, Table 282-0002.

Self-Test 1Suppose the population of Etrusca is 20 million, the

working age population is 15 million, the number of employed is 9 million and the number unemployed is 1 million, answer the following questions:a) What is the size of the labour force?b) What is the participation rate?c) What is the unemployment rate?

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