Textbook Notes (367,787)
Canada (161,400)
Economics (923)
ECN 204 (281)
Chapter 9

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ECN 204
Christos Shiamptanis

Chapter 9 Unemployment and Its Natural Rate Identifying Unemployment How is Unemployment MeasuredLabour force survey regular survey of about 50 000 households of their types of employment length of average work week ectEmployed he or she spend some of the previous work week working at a paid jobUnemployed he or she is on temp layoff or is looking for a jobNot in Labour force everyone else eg full time student homemaker or retireeLabour force the total number of workers including both the employed and the unemployed o Labour forceNumber of employedNumber of unemployedUnemployment rate the percentage of the labour force that is unemployed o Unemployment rateNumber of unemployedLabour forcex 100Labourforce participation rate the percentage of the adult population that is in the labour force o Labourforce participation rate Labour forceAdult Populationx 100Facts about stats o Women have lower rates of labour force participation than men in the same age group o Young people aged 15 to 24 have much higher rates of unemployment than older people o In normal economic times similarly aged men and women tend to have similar rates of unemployment sometimes will deviate Does the Unemployment Rate Measure What We Want It ToSome who report being unemployed may not trying to find a job o Temp layoff or waiting to be recalled to work o Want to qualify for employment insurance o Actually working and being paid under the tableDiscouraged searchers individuals who would like to work but have given up looking for a job How Long Are the Unemployed without WorkAverages are misleading dont get to see big picture of the individuals Why Are There Always Some People UnemployedNatural rate of unemploymentthe rate of unemployment which the economy tends to return in the long runCyclical unemployment the deviation of unemployment from its natural rateFrictional unemployment unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills
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