ECO105Y1 Lecture Notes - Lecture 16: Output Gap, Frictional Unemployment, Discouraged Worker
Document Summary
You are counted as employed if you are working either full-time or part-time at a paid job. If you are a full time student, retiree, or homemaker you are counted as not in the labour force. Labour force is the sum of the employed and the unemployed. Unemployment rate is the percentage of people in the labour force who are unemployed. Labour force participation rate is the percentage of the working age population who are in the labour force. Labour force participation rate = labour force/ working-age population x 100. Discouraged workers are those who want to work, but have given up actively searching for jobs. Frictional unemployment: at any moment in time there will be workers between jobs and workers searching for jobs. It is due to normal labour turnover and job search. Frictional unemployment is healthy unemployment, and is not a problem that policymakers need to address.
