ECO 1102 Lecture Notes - Lecture 7: Collective Bargaining, Structural Unemployment, Market Power

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: D R.M A O T A K O N G M O C H A R L E S O L I V I E R

Document Summary

The problem with unemployment is usually divided into two categories: The e(cid:272)o(cid:374)o(cid:373)y"s (cid:374)atural rate of u(cid:374)e(cid:373)ploy(cid:373)e(cid:374)t refers to the a(cid:373)ou(cid:374)t of u(cid:374)e(cid:373)ploy(cid:373)e(cid:374)t the economy normally experiences. Cyclical unemployment the year-to-year fluctuations in unemployment around the natural rate. It is closely associated with the short-run ups and downs of economic activity. Some of the relevant facts that describe unemployment are: Explanation for the eco(cid:374)o(cid:373)y"s (cid:374)atural rate of u(cid:374)e(cid:373)ploy(cid:373)e(cid:374)t are: Every month, statistics canada conducts the labor force survey. Data are produced on: unemployment, types of employment, length of the average workweek, duration of unemployment. Once the surveyed individual are categorized, statistics canada will compute various statistics to summarize the state of the labor market. Labor force the total number of workers, including both the employed and the unemployed. Unemployment rate the percentage of the labor force that is unemployed (cid:1853)(cid:1854)(cid:1867)(cid:1870) (cid:1832)(cid:1867)(cid:1870)(cid:1855)(cid:1857)=(cid:1867). (cid:1867)(cid:1858) (cid:1831)(cid:1865)(cid:1868)(cid:1864)(cid:1867)(cid:1857)(cid:1856)+(cid:1867). (cid:1867)(cid:1858) (cid:1866)(cid:1857)(cid:1865)(cid:1868)(cid:1864)(cid:1867)(cid:1857)(cid:1856) (cid:1866)(cid:1857)(cid:1865)(cid:1868)(cid:1864)(cid:1867)(cid:1865)(cid:1857)(cid:1866)(cid:1872)=(cid:1867). (cid:1867)(cid:1858) (cid:1866)(cid:1857)(cid:1865)(cid:1868)(cid:1864)(cid:1867)(cid:1857)(cid:1856) Labor force participation rate= labor force (cid:1856)(cid:1873)(cid:1864)(cid:1872) (cid:1867)(cid:1868)(cid:1873)(cid:1864)(cid:1853)(cid:1872)(cid:1867)(cid:1866) (cid:883)(cid:882)(cid:882)