1.6.5.2 Labour Participation Rates & Real Unemployment

In Canada, the labour force includes anyone 14 years of age or older, who is employed or unemployed. To be considered employed, you must have a job. To be considered unemployed, you must not have a job but be able to work, and be actively looking for work. Junior and senior high school students who don't have jobs, and aren't actively looking for work, are not considered part of the labour force. Junior and senior high school students who are employed are considered part of the labour force.

The labor force participation rate is the percentage of the labour force that is able to work, and either employed or unemployed.

Remember: only people who are jobless, available for work, and actively looking for work are considered unemployed. The unemployment rate is the portion of the labour force that is not working, but able to work and actively looking for work. The real unemployment rate is the portion of the labour force that is not working, able to work, actively looking for work, and no longer actively looking for work (they have given up looking).