Bài giảng Labour Market Economics - Chapter 17 Unemployment: Meaning and Measurement

Chapter Seventeen Created by: Erica Morrill, M.Ed Fanshawe CollegeUnemployment: Meaning and Measurement1© 2002 McGraw-Hill Ryerson Ltd.Chapter FocusMeasurement of unemploymentIncidence and duration of unemploymentCanadian unemployment trendsDoes unemployment rate accurately reflect hardship?2© 2002 McGraw-Hill Ryerson Ltd.Measuring UnemploymentLabour Force SurveyCensusUnemployment Insurance Claimants3© 2002 McGraw-Hill Ryerson Ltd.Canadian ExperienceFluctuated widely between 1921-1996Due to cyclical fluctuationsGreat DepressionWorld War II1957-584© 2002 McGraw-Hill Ryerson Ltd.MeasurementsUnemployment ratemeasure of aggregate of labour market activity and degree of utilizationLabour force participation rateRatio of labour force to working age population Employment rateratio of employment to the population5© 2002 McGraw-Hill Ryerson Ltd.Hidden Unemployment/Marginal Labour Force AttachmentIndividuals may not be classified as unemployedDiscourage workerWorkers waiting to be recalled after 6 month layoffsIndividuals working fewer hours than they wishTemporarily employed6© 2002 McGraw-Hill Ryerson Ltd.Labour Force DynamicsFlows between the labour force states are large compared to the stocksGross flows are huge compared to netMany of the unemployed individuals are employed next month7© 2002 McGraw-Hill Ryerson Ltd.Incidence and Duration of UnemploymentKeys to understanding unemploymentflows between states stocks in each stateIncidence of unemploymentportion of unemployed at any periodDuration of Unemploymentlength of time spent in unemployed state8© 2002 McGraw-Hill Ryerson Ltd.Changing Perspectives on UnemploymentUnderstanding unemployment has implications for public policyConclusionslengthy spells of unemploymentemployment is not always founddistribution of unemployment9© 2002 McGraw-Hill Ryerson Ltd.The Divergence of the Canada and U.S. Unemployment RatesPostwar periodCanada’s unemployment rate tracked the U.S.Since 1982permanent or structural difference may be evidentdecline in the incidence of unemployment in U.S.Longer duration of unemployment in Canada10© 2002 McGraw-Hill Ryerson Ltd.Unemployment as a Summary StatisticUnemployment is an labour market indicator aggregate state of the economytightness/looseness of labour marketextent of hardshipunutilized labour supplyImperfect and supplemented with additional measures11© 2002 McGraw-Hill Ryerson Ltd.End of Chapter SeventeenChapter 17-12© 2002 McGraw-Hill Ryerson Ltd.