SOC227H5 Study Guide - Midterm Guide: Population Ageing, Microchip Technology, Truck Driver

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Published on 14 Oct 2015
Test 2 Review
Sept 24
oThe guys in tulula aren’t very educated and cannot hold jobs because of that
oThe guy (BEN) in the article lost his job because his boss gave it to the guy that
was more skilled so that he can save money by not paying Ben
oSo he found another job but has to commute 15 KM a day to get there
oDoes this happen to females as well?
Counting the Labour Force
oPaid work
Working for money
oUnpaid work
Common housewives, community volunteering
oThose 15 years and older are counted in the labour force
oThere are 3 groups to the labour force:
Employed: those that are working in a job
Unemployed: those that are looking for a job to work at
Everybody else: (retired) those not employed and not looking for work
oLabour force = employed + unemployed
There is also work that goes unreported
Work that is paid with cash
Illegal jobs that cannot be reported
Measuring Workforce Activity
1. Participation rate: = employed + unemployed
- population 15+
oDiscouraged workers: are those that are discouraged of looking because they feel
that looking for a job isn’t going to go anywhere
oCultural Influences of Part Rate
Participation rate reflects 2 important cultural beliefs:
1. Those that feel the women should stay at home to raise children
2. The importance of education
2. Unemployment Rate:
Labour Force (employed + unemployed)
oTop Path
As LM conditions go down, layoffs go up
As layoffs go up, unemployment rates go up
oBottom Path
As LM conditions go down, participation conditions go down
As participation rates go down, unemployment go down
If people are no longer looking for work, this shrinks the
3. Employment Rate:
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o Employed (15+)
Population (15+)
Chapter 3
Data Sources
oUnfortunately, in 2011, the conservative government replace the mandatory long
form consensus with a voluntary national household survey (NHS), raising
concerns over the reliability and comparability of data
oA second useful source is the monthly labor for survey, also conducted by
statistics Canada. All of the consensus, which attempts to cover a range of topics,
this random sample survey is designed to collect only work-related information
and so provides much more detail
oWhile economists debate whether the unemployment rate may rise or decline next
year, demographers (who specialize in starting the structure and dynamics of
population) can be quite accurately predict birth rates, life expectancy, population
growth, age distribution of the population, and related trends
Workforce Aging
oDavid Foot claims that “demographics explain about two thirds of everything”
oAlthough we might dispute the claim, we do agree that Canadas demographic
trends influence many economic and social changes
oForemost among these demographic factors is population aging, which has
significant implications for job opportunities, pensions, work values,
organizational structures, and economic growth
oAs baby boomers have moved through the life course, they have left a few
institutions unchanged dash from a revolution in popular music in the 1960s to the
rapid expansion of post secondary institutions in the 1970s to debates over
mandatory retirement in the 2000s
oThis huge and slowly aging bulge in the workforce has affected the career
opportunities of many Canadian workers
Because most work organizations are pier meds, career success has been
defined in terms of climbing a ladder that has room for fewer and fewer
people on each higher level
Immigration and greater workforce diversity
oIn the post World War II era, Canadian governments attempted to tailor
immigration policy to labor market trends, because of anticipation of labor
shortages in key areas
oImmigration levels have been know when unemployment was high, but have been
allowed to rise when economic expansion required more workers
oDisplay concerns buy some that immigrants take jobs away from native-born
Canadians, research shows that this is not the case. Immigrants frequently create
their own jobs or take jobs the others do not wish to have.
A Better Educated Workforce
oCanadians are becoming increasingly well educated, a trend that has also
fundamentally changed the character of the labor force
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oIn 1975, 66% of females and 68% of males in the labor force had only a high
school education or less. Very few (only 7% or and 10%, respectively) had a
university degree
oIn 2012, well over 20% of labor force participants had a university degree (28.4%
for women and 24.4% from men)
oWhile unemployment is higher among the less educated, a considerable number
of Canada’s unemployed are well educated. In addition, many Canadian workers
are in jobs that require little education or training
Labour Force Participation Trends
oLabor force participation (LFP) is the main indicator of the populations economic
activity, at least from the perspective of paid employment
oUsing this official LFP definition to look at work patterns at the beginning of the
last century, only 53% of Canadians were participating in the labor force in 1901.
LFP rating increased to 57% by 1911 but did not go much higher until the 1970’s
oThe 2012 LFP rate was 66.7%, representing a total of 18,876,100 labor force
Gender Differences in Labour Force Participants
Breaking down the LFP rate by gender, we find striking differences
In 1901, only 16% of females 15 years old or older where in the paid labor
By 1990 and 1991, the female LFP rate had rising to almost 59%; it then
dropped slightly for number of years before rising to a high of 62.7% in
To summarize, over the course of a century, female labor force
participation in Canada almost quadrupled, from 16% to over 62%
While female participation rates have been climbing, male rates declined
over most of the past century, although not steeply.
Between 1901 and 1931, the male LFP rate remained close to 90%,
dropping in the decades before and after World War II to percentages in
the mid 80s
More recently, the male LFT rate dropped quickly from 77% in 1989 to
just over 72% in 1996, staying at this level until 2009 when I fell again
slightly to the 71% range
oYounger Children
Labor force participation of Canadian youth (ages 15 to 24, females and
males combined) rose more or less steadily from an annual average of
64% in 1976 to 71% in 1989
In 2012, female LFP rates for teenagers were higher than male rates,
however, young adults, male rates where higher than female rates
oOlder Canadians
Recently, however, it appears that a larger proportion of Canadians may be
delaying retirement, which better capture the likely behavior of those
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