ECN 204 Study Guide - Final Guide: Labour Force Survey, Frictional Unemployment, Efficiency Wage

160 views17 pages
24 Apr 2012
Department
Course
Professor

Document Summary

Based on regular survey of 50,000 households = labour force survey. Based on adult population (15 yrs or older) The labour force is the total # of workers, including the employed and unemployed. Unemployment rate (u-rate): % of the labour force that is unemployed. U-rate = 100 x # of unemployment/labour force. Labour force participation rate: % of the adult population that is in the labour force labour force population = 100 x labour force/adult population. It is difficult to distinguish between a person who is unemployed and a person who is not in the labour force. Discouraged searchers, people who would like to work but have given up looking for jobs after an unsuccessful search, don"t show up in unemployment statistics. Other people may claim to be unemployed in order to receive financial assistance, even though they aren"t looking for work.