Question

In: Economics

5 pts Currently, record numbers of Canadians are becoming unemployed due to the ongoing COVID-19 crisis....

5 pts

Currently, record numbers of Canadians are becoming unemployed due to the ongoing COVID-19 crisis. In this situation, how useful a measure is the unemployment rate? Briefly discuss.

Solutions

Expert Solution

Usefulness of the measure of unemployment rate is given below-
1.The calculation is done by dividing the number of people unemployed by the number of people employed or people in the labour force.
2.Unemployment rate has been considered as the economic indicator,a statistic which is helpful to understand the overall health of an economy.
3.It is divided demographically in groups by - age or gender.Like men in Canada have higher unemployment rate than women. Also higher unemployment rate for youth are of long standing.
4.Measurement of unemployment is done on the basis of types of unemployment. Like it is divided into two types Frictional and Structural unemployment. It is then calculated how many are falling under what category.
5.Racialized Canadians and Unemployment- That is racialized Canadians have more labour force than non-racialized Canadians.9.2% of racialized Canadians were unemployed compared to 7.3% of non racialized Canadians.


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