ECON102 Chapter Notes - Chapter 21: Labour Force Survey, Frictional Unemployment, Unemployment Benefits

• School: University of Waterloo
• Department: Economics
• Course: ECON102
• Professor: Maryann Vaughan

Document Summary

Unemployment results in: lost incomes and production. Loss of a job brings a loss of income and lost population. Losses are devastating for people who bear it. Unemployment benefits create a safety net but doesn"t fully replace lost ages. Prolonged unemployment permanently damages a person"s job prospects by destroying human capital: lost human capital. Every month, statistics canada conducts a labour force survey in which it asks 54, 000 households. To be counted as unemployed, a person must be (in 1 of 3 categories) Of people unemployed labour force x 100 after the recession ends members of the labour force labour force workingage population x100 o o. Unemployment rate the percentage of the labour force that is unemployed. The unemployment rate increases in a recession and reaches its peak value. Labour force participation rate the percentage of the working-age population who are. The purpose of the unemployment rate is to measure the underutilization of labour resources.