Ms. Park

 Christine

 In 2010, Canada’s total population was 25 million. Out this population, 75% were above age 15. Out of this 75%, 5% live in the Territories. 2 million people are discouraged workers. 5 million people are unemployed members of the labour force. Labour force population = (25 m x 75%) – (25 m x75% x 5%) = 17.8 m Labour force = 17.8 m – 2 m = 15.8 m Unemployment rate = 5/15.8 = 32% Participation rate = 15.8/17.8 = 89%

 The way official unemployment rate is calculated may either understate or overstate the true level of unemployment because of:  A) Underemployment: does not differentiate between part-time and full-time workers, nor appropriateness of work  B) Discouraged workers  C) Dishonesty

 In groups of three or four, find four types of unemployment and write down what they are with an explanation beside each type.  Be able to explain, without looking at the paper, what each type when I ask you  The first group to finish wins candies and 1% bonus on your test

 A) Frictional unemployment: unemployment due to being temporarily between jobs or looking for first job.  B) Structural unemployment: unemployment due to mismatch between people and jobs.  C) Cyclical unemployment: unemployment due to fluctuations in output and spending.  D) Seasonal Unemployment: unemployment due to seasonal nature of some occupations

 Full employment: the highest reasonable expectation of employment for the economy as a whole  Natural unemployment rate: the unemployment that defines full employment ◦ Only includes frictional unemployment  Seasonal unemployment is already omitted from the official unemployment rate using seasonal adjustment

 Question 7 & Exit Slip