ECON102 Chapter Notes - Chapter 21: Real Wages, Price Level, Unemployment Benefits

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

Document Summary

2 main reasons why unemployment is a serious personal and social economic problem: loss of incomes and production o o. Loss production: lower consumption and lower investment in capital. Lowers the living standard in both the present and the future: loss of human capital. Ex. manager loses his job when his firm downsizes; after trying to get back, he can"t compete with younger mba graduates. Loss of human capital is particularly acute for older workers. Measures the unemployment rate of canada each month. Statistic canada conducts a labour force survey (54,000 households) In labour force: sum of employed and unemployed. Employed: person must have either a paid full-time job or a part-time job. Part time workers either want part time work (voluntary part time) or want full time work (involuntary part time) Unemployed: don"t have a job, but able and willing and available for work. Must be in one of these 3 categories.