ECF1200 notes [Week 4].docx - ECF1200 notes[Week 4 1.1 The...

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ECF1200 notes [Week 4] 1.1 The labour force The labour force survey : conducted each month by the ABS to calculate the unemployment rate To be classified as employed , a person must have: Worked only one hour or more in the week before the survey. To be classified as unemployed , a person must: not have worked at all in the week before the survey; must have been actively looking for work in the past four weeks; must be ready to start work immediately. Two problems with measuring unemployment: ABS may understate the true degree of joblessness in the economy ABS may overstate the true degree of joblessness in the economy Unemployment rate: % of labour force that is unemployed Unemployment rate = numberof unemployed Labour force 100 Labour force: The sum of employed and unemployed workers in the economy Labour force participationrate = labour force workingage population 100 1.2 Trends in labour force participation Increase in labour force participation rate for women are due to: Changing social attitudes Legislation outlawing discrimination on the basis of gender Increasing wages for women Desire to increase household income levels Family’s having fewer children.
1.3 Job creation and job destruction The Australian economy creates and destroys hundreds of thousands of jobs every year. New firms begin Existing firms expand Some firms contract; some firms go out of business.

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