Manitoba unemployment rate forecast - Essay Example

By the year 2010, the province’s economy experienced a 2.4% growth per year. Manitoba’s economy remained unchanged amid the slowdown in the country’s economy. The province also registered a 2.4% increase in labor income. In addition, the economy has experienced an increase in employment levels due to increased demand for skilled laborers. Consequently, the unemployment levels have gradually reduced over the years. However, there are minimal changes in the unemployment rate in the province since 2010.

The province has registered various changes in the overall labor force (Marcil, n.p.). Employment in an economy represents a number of eligible individuals who are willing to work and can be engaged in full time or part-time labor at prevailing wage rates. This is because the economy needs human capital where individuals play a part in the manufacture of goods and services for the economy. At this level, the economy experiences full employment where all available labor resources are utilized in an economically efficient way.

On the other hand, unemployment is the number of individuals in an economy who are ready and capable to work, but cannot find a job. Therefore, the jobless individuals who are unwilling to work in an economy are not classified in the unemployment category. Unemployment is a key measure of economic health of a region or country. There are three types of unemployment namely frictional, structural, and cyclical unemployment (Kennedy 37). The frictional unemployment is a short-run unemployment resulting from the process of searching for a new employment by individuals.

Structural unemployment represents a persistent lack of jobs whenever the incomes in employment markets do not match up the supply and demand. Finally, cyclic unemployment refers to the short-term unemployment related to the vicissitudes of the market. The unemployment rate determines the levels of unemployment in an economy (Kennedy 37).