ECO 1302 Lecture Notes - Lecture 40: Frictional Unemployment, Unemployment Benefits, Structural Unemployment

• School: University of Ottawa
• Department: Economics
• Course: ECO 1302
• Professor: Mario Seccareccia

Document Summary

Unemployment is a serious personal problem for the unemployed. Unemployment rate is greater for younger and less educated workers. Figure 4: canadian labour market participation, males & females, 25- Statistics canada estimates the labour force, the employed, and the unemployed. These distinctions cannot deal very well with the problems of discouraged (cid:449)o(cid:396)ke(cid:396)s a(cid:374)d of (cid:862)hidde(cid:374)(cid:863) o(cid:396) (cid:862)disguised(cid:863) u(cid:374)e(cid:373)plo(cid:455)(cid:373)e(cid:374)t. Discouraged worker: an unemployed person who gives up looking for work and is therefore no longer counted as part of the labour force. Frictional unemployment is the normal movement of workers from one job to another. Structural unemployment e(cid:454)ists (cid:449)he(cid:374) (cid:449)o(cid:396)ke(cid:396)s" cha(cid:396)acte(cid:396)istics do (cid:374)ot fit (cid:449)ith e(cid:373)plo(cid:455)e(cid:396)s" (cid:396)e(cid:395)ui(cid:396)e(cid:373)e(cid:374)ts. Cyclical unemployment occurs when the level of economic activity declines. It was once thought that 4% was a good target. E(cid:448)e(cid:374)ts si(cid:374)ce the ea(cid:396)l(cid:455) (cid:1005)97(cid:1004)"s th(cid:396)ough (cid:1006)(cid:1004)(cid:1004)7 ha(cid:448)e left eco(cid:374)o(cid:373)ists u(cid:374)ce(cid:396)tai(cid:374) of the full-employment unemployment rate. Figure 5: annual unemployment rates by province and territory, 15 years & older, 2007.