 DEFINITION |
The unemployment rate is the percentage
of the labour force that actively seeks work but is unable to find work
at a given time. Discouraged workers—persons who are not seeking
work because they believe the prospects of finding it are extremely poor—are
not counted as unemployed or as part of the labour force. (See Employment
Rate.)
| Unemployment rate = |
Number
of unemployed people |
x 100% |
| Number
of people in the labour force |
The number of persons unemployed is not the same thing
as the number of people receiving Employment Insurance (formerly Unemployment
Insurance) benefits, since not all unemployed people are eligible for
those benefits and some people receiving EI benefits for things like maternity
leave and fishing benefits may not be considered unemployed.
| HOW
DOES IT AFFECT CANADIANS? |
The unemployment rate is a key indicator of the health of
the economy and of society more generally. When economic growth is strong,
the unemployment rate tends to be low and a person who wants a job is
likely to experience little trouble finding one. On the other hand, when
the economy is stagnating or in recession, unemployment tends to be higher.
When a job is lost, not only is it a loss to society and the economy,
but the loss of income can also create hardship for individuals and families.
However, for the majority of those who experience unemployment, this is
only a temporary situation that often leads to finding jobs better suited
to their skills and talents.
| LINKS |
Labour Force Survey - Guide & Results
Source: Statistics Canada
http://www.statcan.ca/english/Pgdb/other/lfs/lfsintro.htm
Key Economic Events - Unemployment Insurance
Act
Source: Canadian Economy Online
Unemployment Rate
Source: Canadian Economy Online
http://www.canadianeconomy.ca/english/economy/unemployment.cfm
|
