UR 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.