VPAA12H3 Lecture : Notes

7) Economists, statisticians, and business analysts are interested in the "unemployment rate” because this number indicates an economic system's ability to effectively use an important factor of production. However, many people believe that a government's "official unemployment rate understates a country's ability to match the skills of its workforce to appropriately productive jobs. The other reason highlighted during the lecture was: a) b) c) d) the mismatch effect underemployment microeconomic underutilisation the factor utilisation gap