Quote:
Originally Posted by FlamesAddiction
I am not sure if I understand this sentence. Are you saying that unemployment statistics only include people accepting EI benefits? I could be wrong, but I don't think that is true. I know for sure it isn't true in every country.
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Unemployment rate calculates the percentage of people not working but are willing, able, and are actively seeking work. Many people who would like to work but cannot (due to a disability, for example), or have become discouraged after looking for work without success, are not considered unemployed under this system. Since they are not employed either, they are categorized as outside the labor force and don't count at all in the equation.
Say we have 100 people, 90 are working, and 10 are on EI. So unemployment is 10/100=10%
Let's say 5 of them go past EI and can no longer claim. Then they are taken out of both numerator and denominator. So the rate is now 5/95 = 5.2%.