DEFINITIONS RELATED TO THE LABOUR FORCE
WORKING AGE POPULATION:
All people 15 years and older
SUBDIVIDES INTO TWO CATEGORIES
1.
Labour force
2.
Not in the labour force
PARTICIPATION RATE
LABOUR FORCE
WORKING AGE POPULATION
Those who are working, or would like to be working as a proportion of the total population over 15 years of age.
LABOUR FORCE SUBDIVIDES INTO TWO CATEGORIES
1.
Employed
2.
Unemployed
EMPLOYMENT TO POPULATION RATE
EMPLOYED
WORKING AGE POPULATION
Those who are working as a proportion of the total population over 15 years of age.
UNEMPLOYMENT RATE
UNEMPLOYED
LABOUR FORCE
Those who would like to be working as a proportion of those who are working, or would like to be working.

TYPES OF UNEMPLOYMENT
FRICTIONAL
NORMAL LABOUR TURNOVER:
Firms take time to look for workers, workers take time to look for jobs. The number of vacancies can outnumber the number of people looking for work, and there will still be people unemployed while they look for the right job.
STRUCTURAL
DUE TO CHANGES IN TYPES OF WORK OR LOCATION OF WORK.
Technological change causes structural unemployment. Workers must learn new skills or move to new locations. A progressive economy will produce structural unemployment as new technologies are introduced and people must learn new skills. The invention of the automobile resulted in the unemployment of blacksmiths and carriage makers and new jobs for auto workers and mechanics.
The closing of the Phaelan mine is also an example of structural unemployment.
The much higher levels of unemployment in Atlantic Canada than elsewhere in
Canada reflect structural unemployment. The closure of the Phelan mine because of roof falls is a recent example of structural unemployment. Any coal mined could be sold, but it is impossible to mine the coal safely. If the coal mine cannot be reopened, workers must retrain and likely relocate to find jobs. A change in the structure of the Atlantic Canadian economy is required to eliminate this type of job losses. If natural gas replaces coal in electrical generation, structural unemployment of coal miners would result.
SEASONAL
Many industries can operate only seasonally. If workers are unable to combine work in complementary industries (fishing and snow clearing), they will be unemployed in the off season.
One of the most controversial aspects of the unemployment insurance system is providing benefits to seasonally unemployed workers. Since their unemployment is predictable, it might be expected that the job should pay enough to compensate for slack time. That is, a carpenter's or a fisherman's wages should be sufficiently high to provide a good yearly income, just as a farmer is expected to earn enough in the summer to support the family year round. There is little logic in giving fishers unemployment insurance and not farmers.
CYCLICAL
Unemployment caused by the business cycle. During recessions, people buy fewer goods and services, therefore production is reduced and workers are laid off. During expansions, production grows and workers are hired.

If a coal mine closed because there was no demand for coal as a result of poor economic conditions -- people are buying less steel and less electricity, the unemployment which resulted would be cyclical.
Macro-economics has given us a very good understanding of the causes of this type of unemployment and has suggestions about policy to reduce this type of unemployment.
TARGET RATE OF UNEMPLOYMENT
The target rate of unemployment; the rate that is achievable without causing accelerating inflation. The rate varies with economic circumstances. Very likely
Alberta is currently above its target rate of unemployment. Cape Breton and
Newfoundland have long been below their target rates.
Government can try to manage the performance of the economy to smooth out the business cycle, and reduce a portion of unemployment. If this is done, we have achieved an important goal.
Some unemployment is inevitable, because of frictional unemployment. So long as people enter and leave the labour force of leave one job in the expectation of finding a better job, there will be frictional unemployment.
A dynamic economy will have structural unemployment because new industries will emerge (word processors) and old industries will therefore die (typewriters), and people will need time to find the best alternative jobs as the old industries die.
Seasonal employment is also difficult to eliminate, especially in a climate such as
Canada’s.
Note: the word ‘natural’ is value laden. Most of us think of natural as ‘good’. I would be happier with a term such as ‘base unemployment’. While some unemployment is a natural part of a dynamic economy, the more quickly people who wish to work find suitable jobs, the better, even if they lose work due to structural, seasonal or frictional unemployment.

Working Age Population
Both sexes
Labour force
Men
Women
2003 thousands
25,250.70 thousands
Both sexes 17,046.80
Participation rate
Men
Women
Labour force/ Working Age population
Men
Women
17,046.8/ 25,250.7
68%
12,409.40
12,841.40
9,135.90
7,910.90
74%
62%

Employed
Both sexes
Employment to Pop. Rate
Men
Women
Both sexes
Unemployed
Both sexes
Unemployment rate
15,746.00
15,746/ 25,250.7
62%
Men
Women
1,300.90
Men
Women
Men
Women
1,300.9/ 17,046.8
7.6%
8,406.70
7,339.30
68%
57%
729.2
571.6
8.0%
7.2%