ECON102 Chapter Notes - Chapter 9: Labour Force Survey, Frictional Unemployment, Unemployment Benefits
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ECON102 Full Course Notes
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Natural rate of unemployment refers to the amount of unemployment that the economy normally experiences. Cyclical unemployment refers to the year-to year fluctuations in unemployment around its natural rate. It is closely associated with the short-run ups and downs of economic activity. Natural rate of unemployment does not imply that this rate of unemployment is desirable or constant, or impervious to economic policy. Every month they run a survey of 50 000 households measuring types of unemployment, length of average work week ect this survey is called labour force survey. Labour force is defined by stats can as the sum of employed and unemployed workers. Labour force = (# of people employed) + (# of people unemployed) Unemployment rate is defined as the percentage of the labour force that is unemployed. Unemployment rate = number of people unemployed x 100. Labour-force participation measures the participation of the total adult population of canada that is in the labour force.