1. Unemployment When persons 15 years old and over are actively seeking work but do not have employment Working-age population the country’s total population, excluding: those under 15 years of age; those living in the three territories or on aboriginal reserves; and full-time members of mental and penal institutions or hospitals, and those in the armed forces © 2012 McGraw-Hill Ryerson Limited4- 1 LO1

2. Unemployment © 2012 McGraw-Hill Ryerson Limited4- 2 LO1 Total population34.2 Working-age population27.7 Labour force18.5 Employed17.0 Unemployed 1.5 Source: Adapted from Statistics Canada CANSIM Database, Tables 282-0002 and 051-0001. Population and Employment Canada 2010 (millions)

3. Unemployment Labour force members of the working-age population, who are either employed or unemployed Employed those who are in the labour force and hold paid employment Unemployed those who are in the labour force and actively seeking employment, but do not hold paid employment © 2012 McGraw-Hill Ryerson Limited4- 3 LO1

4. Unemployment Participation rate members of the working-age population, who are either employed or unemployed © 2012 McGraw-Hill Ryerson Limited4- 4 LO1 Participation rate = labour force x 100 working-age population Participation rate = labour force x 100 working-age population Canada’s participation rate for 2010: 18.5 x 100 = 66.8% 27.7

5. Unemployment Unemployment rate the percentage of those in the labour force who do not hold paid employment © 2012 McGraw-Hill Ryerson Limited4- 5 LO1 Unemployment rate = # unemployed x 100 labour force Unemployment rate = # unemployed x 100 labour force Canada’s unemployment rate for 2010: 1.5 x 100 = 8.1% 18.5

6. TABLE 4.3 Unemployment Rates, Canada Selected Years 1993–2010 4-6© 2012 McGraw-Hill Ryerson Limited LO1 YearTotal (%)Male (%)Female (%) 199311.411.911.3 19969.69.99.3 20017.27.56.9 20066.36.56.1 20076.06.45.6 20086.16.65.7 20098.39.47.0 20108.08.77.2 Source: Adapted from Statistics Canada, CANSIM Database, Table 282-0002.

7. TABLE 4.3 Unemployment by Province 2010 4-7© 2012 McGraw-Hill Ryerson Limited LO1 Unemployment % Newfoundland and Labrador 14.4 Prince Edward Island 11.2 Nova Scotia 9.3 New Brunswick 9.3 Quebec 8.0 Ontario 8.7 CANADA8.0 British Columbia7.6 Alberta6.5 Manitoba5.4 Saskatchewan5.2 Source: Adapted from Statistics Canada, CANSIM Database, Table 282-0002.

8. Self-Test 1 Suppose the population of Etrusca is 20 million, the working age population is 15 million, the number of employed is 9 million and the number unemployed is 1 million, answer the following questions: a)What is the size of the labour force? b)What is the participation rate? c)What is the unemployment rate? © 2012 McGraw-Hill Ryerson Limited LO1 4-8