ECO 1102 Lecture Notes - Lecture 4: Discouraged Worker, Layoff, Business Cycle

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: David Gray

Document Summary

Chapter 10: unemployment and the demand for labour. Much smaller gap: lfprs for women have increased significantly since 1976 but remain. Generally higher for men than for women. Highest for men and women aged 24 to 44 years. Significant for people aged 65 years and over. In 2017, the average spell of employment lasted 19. 6 weeks (up from 15 weeks in 2008) But average can hide what is really important. Example: consider 4 unemployed people -3 are employed for 4 weeks each while the 4th is employed for 52 weeks. The average length of employment is 16 weeks. But the problem lies only with the 4th person. Lesson: care must be taken when interpreting data on unemployment. Does the unemployment rate always accurately reflect what"s happening in the labour market: sue lost her job and begins looking for a new one. The unemployment rate rises because sue is now unemployed. This suggests the labour market is worsening and it is.