SOSC 1510 Study Guide - Midterm Guide: Human Capital, Discouraged Worker, Labour Force Survey
17 Dec 2015
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Unemployment rate is to measure the underutilization of labour resources. It excludes marginally attached workers and part-time workers who want full time jobs. Create a safety net but don"t fully replace loss wages, and not everyone receives benefits. Short term employment is not a macroeconomic problem. Prolonged unemployment permanently damages a persons jobs prospects by destroying human capital. Productivity decreases --> reduces growth rate the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country. To be counted as unemployed, a person must be in one of the following. Without work but has made specific efforts to find a job within the previous four. Waiting to be called back to a job from which he or she has been laid off. Waiting to start a new job within four weeks. Labour force is the sum of employed and unemployed workers.
