Whats the difference between the Jobboom Index and the unemployment rate?
The Jobboom Index and the unemployment rate are very different. Unemployment figures are based on the number of active job-market participants. Thus, an unemployment rate of eight percent means that for every 100 active job-market participants, eight are currently unemployed and seeking employment, while 92 are employed full-time or part-time. The unemployment rate does not take into account the entire working-age population-it only considers active job-market participants. What this means is that even if new jobs have been created in a given month, the unemployment rate may actually rise, as new job seekers become active participants in the job market. The Jobboom Index avoids this distortion. Indeed, the Jobboom Index is based on Ontario’s entire working-age population (all residents 15 years old and over). First, we calculate the number of jobs held in Ontario. Then, that number is divided by Ontario’s working-age population. The result is known as the employment rate-a rate that is
