Richard Damra Monday, February 11, 2013
Econ 1BB3 – Chapter 9
Is unemployment necessarily bad?
Statistics Canada divides the non-institutional adult population into three categories:
o 1) Employed
o 2) Unemployed – you have to be available of work and actively looking for work
o 3) Not in labour force – If you are either employed/unemployed you are in the labour
force. Note in labour force are people such as: Grandparents, students, and house wives
o Note: Stats Canada considers adults as someone who is age 15 or older.
o Unemployment rate: fraction of the labor force unemployed.
Unemployment rate = (# of unemployed/ labour force) x 100
LFPR(Labour Force Participation Rate) = (Labour force / adult population) x 100
Employment rate = (# of employed / adult population) x 100
Do these figures reflect reality?
1) Discouraged workers – Who are unemployed for awhile then become discouraged. (Not in
o i) People are working part time who would rather full time
o ii) Working below skill level. Ex: A person with computer engineering degree but