CHAPTER 9 - CHAPTER 9 - Unemployment and its Natural Rate...

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CHAPTER 9 - Unemployment and its Natural Rate How is unemployment measured? - Stats Can is in charge of measuring unemployment. They survey what is called the “labour force survey” which consists of about 50,000 households - Adults are considered 15 years and older - Each household is in 3 categories: Employed, Unemployed, Not in the labour force. Labour force: The total number of workers including both employed and unemployed. Labour force = # of employed + # of unemployed Unemployment rate: The percentage of the labour force that is not employed Unemployment rate = Labour force participation rate: the % of the adult population that is in the labour force Labour force participation rate = - Women and men have similar rates of unemployment throughout various age groups. - Women have lower rates of labour force participation - Younger people face higher unemployment than older people - The unemployment rate in Atlantic Canada is consistently higher than the rest of Canada Does the unemployment rate measure what we want it to? - More than 1/3 of unemployed are recent entrants into the labour force. - The LF also includes older workers which had retired but are now looking for work again - Difficulties \in interpreting unemployment data are such because someone might be unemployed, but not trying hard to find a job, for ex/ they might be on temp layoff, or maybe they want to qualify of E.I. but are being paid under the table. - On the other hand, some people who report being out of the LF may want to work. - Discouraged searchers: individuals who would like to work but have given up looking for a job - Underemployed people do not show up in unemployed stats How long are the unemployed without work? - In 2005, the avg unemployed spell was 15.5 weeks - Low was 11.5 weeks in Alberta
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- High was 20.2 weeks in Quebec - Averages also eliminate the worst of the statistics, making it seem like long-term unemployment is barely an issue for anyone. -
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This note was uploaded on 04/13/2010 for the course CA 1001 taught by Professor James during the Spring '06 term at Buffalo State.

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CHAPTER 9 - CHAPTER 9 - Unemployment and its Natural Rate...

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