Module 6: Unemployment Flashcards
Textbook
How do we define ‘unemployed’?
This generally defined:
1. As those who are not currently ‘employed’ and who indicate by their behavior that they want to work at prevailing wages and working conditions
What is the ‘measurement of employment’ based on?
It’s based on the ‘labor force survey’
How does the LSF categorize people as unemployed?
They categorize people as unemployed:
- If they did not work in the ‘reference period’ but were available for and searching for work
When is the LFS conducted by Stats Canada?
Its conducted monthly
What are the two exceptions to those considered unemployed by the LSF?
- Unemployed include individuals who were available for work but were not seeking work because they were temporarily layoff from a job which they expect to be recalled back
- or they had a new job to start within four weeks
What is the genral pricniple to be counted as unemployed?
- One has to be ‘avilable for’
- Actively searching for work (meaning engaging in some form of job search)
What’s an example of job search?
- Contacting employers
- Checking job ads
What does job search mean by defintion of LSF?
It means having looked for work , sometimes during the ‘previous four weeks’
what are examples of those classified out of the workforce?
students, individuals who engage in householdhold work,
those permantely not able to work ,
retired)
How does the LSF classify being employed?
- If they did any work for pay or profit (including unpaid work on a farm,or business)
- Or if they normally had a job but were not at work because of:
i. bad weather
ii. illness
iii. Industrial dispute
iv. Vacation
What is the ‘equation’ for the labour force?
The employed + unemployed
What is the unemployment rate?
Its the number of unemployed / labour force
What does the unemployment rate show?
it allows us to see the proption of the labor force that is not currently unemployed.
What is the ‘unemployment rate’ most commonly used as a measure?
- To measure aggregate labor market activity
- Degree of labor force utilization
Whata re two alternative measures for unemployment rate?
- Labour force participation rate
- employment rate
How to calculate the employment rate?
It is the ratio of those employed/ population
When looking at the ‘fraction of the work-age population’ that is employed and in the labour force: (which equation do we use)?
- Employment rates
- Labour force participation rate
When looking at the fractio of the labour force that is out of work + searching for work which equation do we use?:
Unemployment rate
What is ‘hidden unemployment’ or margin force attachment?
It refers to situations in which individuals ma be without work yet they desire work but are not classified as unemployed according to stats Canada
What is an exmaple of those in the hidden unemployment
Hamza:
1. Refers to an idnivual who may wish to work at prevailing wages but who re not actively seeking work because they believe no work is available
What is the ‘incidence of unemployment’?
It shows the proportion of indivduals who become unemployed in any period.
This shows the probability of a member of the group becoming unemployed
This is usually measure as the fraction of the labor force that is newly unemployed
What is the duration of unemployment
Shows the length of time spent in the ‘unemployed state’ before obtaining employment or leaving the workforce
This shows the length of time the individual remains unemployed on average
The unemployment rate (UR)
The unemployment rate is affected by both incidence and duration
UR = I*D
