Feb 25, Chapter 9 – Unemployment

Feb 25, Chapter 9 – Unemployment - 18:05:00

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern