Unemployment

Unemployment

Refers to people who do not have a job, are looking for work, and are able to start working.

Employed

Those who have any work, whether it is paid, self-employment, or unpaid work in a family business.

Out of Labour Force

People who are not working and not looking for work, such as students, retirees, or homemakers.

Labour Force

All the people who are either working or looking for work.

Unemployment Rate

Calculated by the formula: [Unemployment Rate = (Number of Unemployed / Labour Force) x 100].

Census Unemployment Rate

Percentage of unemployed people looking for work compared to the total population aged 15 and over.

Frictional Unemployment

Short-term joblessness while switching between jobs.

Structural Unemployment

Happens when skills do not match job openings or when certain jobs are lost.

Cyclical Unemployment

Linked to economic conditions, rises during recessions, and falls when the economy improves.

Natural Rate of Unemployment

The normal level of unemployment in a healthy economy, which mainly involves frictional and structural unemployment.

Discouraged Workers

Individuals who want to work but have stopped searching for a job.

Efficiency Wages

The idea that paying higher wages can lead to better productivity, better worker health, and lower turnover.

Public Policies

Programs that help with job training and finding jobs can lower unemployment.

Minimum Wage Laws

These can cause some unemployment by setting wages higher than what some businesses can afford.

Union Influence

Unions may negotiate higher wages, which can increase labor supply but reduce demand for jobs.