ECO105Y1 Chapter Notes - Chapter 3: Unemployment, Output Gap, Nominal Interest Rate
Document Summary
Macro chapter 3: costs of (not) working and living (unemployment and inflation) The labour force is the sum of the employed and unemployed. The unemployment rate is the percentage of people in the labour force who are unemployed without work and actively seeking a job. Labour force participation rate the percentage of the working-age population who are in the labour force. Involuntary part-time workers employed part time, would rather have full time jobs but cant find one. Discouraged workers want to work but have given up actively searching for jobs. Labour underutilization rate unemployment rate including unemployed involuntary part-time workers, discourages works. There are large regional differences in unemployment rates in canada. Frictional unemployment due to normal labour turnover and job search; healthy part of changing economy; not a problem. Structural unemployment due to technological change or international competition making workers skills obsolete; healthy part of a changing economy; problem requiring retraining.
