Chapter 21 Slides

Unemployment Rate

The percentage of the labor force that is unemployed.

Frictional Unemployment

Unemployment that arises from normal labor turnover, including people entering and leaving the labor force.

Structural Unemployment

Unemployment that arises due to changes in technology or international competition that alters the skills needed for jobs.

Cyclical Unemployment

Unemployment that follows the economic cycle, increasing during recessions and decreasing during economic expansions.

Labour Force Survey (LFS)

A monthly survey conducted by Statistics Canada to assess the employment status of households.

Working-age Population

The total number of individuals aged 15 years and over, eligible for work.

Natural Rate of Unemployment

The combination of frictional and structural unemployment, which typically hovers around 6% in Canada.

Participation Rate

The proportion of the working-age population that is either employed or actively seeking employment.

Employed

Individuals who are currently working full-time or part-time.

Unemployed

Individuals who do not have a job, are able and willing to work, and have made efforts to find work.

Labour Force

The sum of all employed and unemployed individuals.

Real Wage

The nominal wage adjusted for inflation; reflects the purchasing power of wages.

Youth Unemployment Rate

The unemployment rate for individuals aged 15 to 24, which is typically higher than the overall unemployment rate.

Economic Conditions

Factors that influence the state of the economy and can shift the demand for labor.

Long-Run Unemployment Causes

Factors that lead to frictional and structural unemployment, including skill mismatches and changes in job sectors.