Module 6: Unemployment

Question 1

How do we define ‘unemployed’?

Answer 1

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

Question 2

What is the ‘measurement of employment’ based on?

Answer 2

It’s based on the ‘labor force survey’

Question 3

How does the LSF categorize people as unemployed?

Answer 3

They categorize people as unemployed:

1. If they did not work in the ‘reference period’ but were available for and searching for work

Question 3

When is the LFS conducted by Stats Canada?

Answer 3

Its conducted monthly

Question 4

What are the two exceptions to those considered unemployed by the LSF?

Answer 4

1. 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
2. or they had a new job to start within four weeks

Question 5

What is the genral pricniple to be counted as unemployed?

Answer 5

1. One has to be ‘avilable for’
2. Actively searching for work (meaning engaging in some form of job search)

Question 6

What’s an example of job search?

Answer 6

1. Contacting employers
2. Checking job ads

Question 7

What does job search mean by defintion of LSF?

Answer 7

It means having looked for work , sometimes during the ‘previous four weeks’

Question 8

what are examples of those classified out of the workforce?

Answer 8

students, individuals who engage in householdhold work,
those permantely not able to work ,
retired)

Question 9

How does the LSF classify being employed?

Answer 9

1. If they did any work for pay or profit (including unpaid work on a farm,or business)
2. Or if they normally had a job but were not at work because of:

i. bad weather
ii. illness
iii. Industrial dispute
iv. Vacation

Question 10

What is the ‘equation’ for the labour force?

Answer 10

The employed + unemployed

Question 11

What is the unemployment rate?

Answer 11

Its the number of unemployed / labour force

Question 12

What does the unemployment rate show?

Answer 12

it allows us to see the proption of the labor force that is not currently unemployed.

Question 13

What is the ‘unemployment rate’ most commonly used as a measure?

Answer 13

1. To measure aggregate labor market activity
2. Degree of labor force utilization

Question 14

Whata re two alternative measures for unemployment rate?

Answer 14

1. Labour force participation rate
2. employment rate

Question 15

How to calculate the employment rate?

Answer 15

It is the ratio of those employed/ population

Question 16

When looking at the ‘fraction of the work-age population’ that is employed and in the labour force: (which equation do we use)?

Answer 16

1. Employment rates
2. Labour force participation rate

Question 17

When looking at the fractio of the labour force that is out of work + searching for work which equation do we use?:

Answer 17

Unemployment rate

Question 18

What is ‘hidden unemployment’ or margin force attachment?

Answer 18

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

Question 19

What is an exmaple of those in the hidden unemployment

Answer 19

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

Question 20

What is the ‘incidence of unemployment’?

Answer 20

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

Question 21

What is the duration of unemployment

Answer 21

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

Question 22

The unemployment rate (UR)

Answer 22

The unemployment rate is affected by both incidence and duration
UR = I*D