Feb 25, Chapter 9 – Unemployment

Feb 25, Chapter 9 – Unemployment -...

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Chapter 9 – Unemployment 25/02/2008 18:05:00 Natural rate of unemployment Unemployment that does not go away on its own even in the long run The amount of unemployment that the economy normally experiences Cyclical Unemployment Year-to-year fluctuations in unemployment around its natural rate Arises due to short term  economic fluctuations  currently Canada is observing an unemployment rate of 5.8% and the natural  rate fluctuates between 6 and 8 percent Sources of the Natural Rate of Unemployment Two sources o Frictional unemployment Unemployment that results from the time that it takes to match  workers with jobs Frictional unemployment is inevitable because the economy is  always changing It takes time for workers to search for and find jobs in new  sectors This means that the natural rate of unemployment can  never be zero What can the gov’t do to affect frictional employment? The gov’t (Human Resource Development Canada) has  programs that can reduce the time it takes unemployed  workers to find new jobs, including: Government-run employment agencies – give out  information about job vacancies in order to match  workers and jobs more quickly
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This note was uploaded on 12/08/2009 for the course TEFLER ADM1300 taught by Professor Koppel during the Fall '09 term at University of Ottawa.

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Feb 25, Chapter 9 – Unemployment -...

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