ECON102 Lecture Notes - Lecture 3: Frictional Unemployment, Core Inflation, Structural Unemployment

• School: University of Waterloo
• Department: Economics
• Course: ECON102
• Professor: Maryann Vaughan

Document Summary

Lost incomes and production: lower production = lower consumption = lower investment in capital = lower living standard. Lost human capital: prolonged unemployment damages a person"s job prospect by destroying human capital. Not in the labour force: ie. work without pay. One temporary layoff with an expectation of recall. Without work but has made specific efforts to find a job within the previous four weeks. Has a new job to start within four weeks. Persons residing in the yukon, the northwest territories, nunavut, and aboriginal settlements. The unemployment rate : increases in a recession and reaches its peak value after the recession ends. Discouraged searchers -> want a job, but neither working nor looking for work because of repeated failures. Long-term future starts -> with a job to start in more than four weeks = not in the labour force. Involuntary part-timers -> work as part-time but want full-time.