Final answer:
Increases in unemployment and job vacancies indicate growing frictional or structural unemployment, caused by the time to find job matches or skill mismatches, respectively. The discrepancy in the Canadian labor force statistics in 2003 is accounted for by individuals not participating in the labor force.
Step-by-step explanation:
Simultaneous increases in unemployment and job vacancies are a sign of growing frictional or structural unemployment. Frictional unemployment occurs when there is a time lapse between jobs as employees seek positions that better match their skills, and employers look for suitable candidates. Structural unemployment happens when there is a mismatch between the skills workers offer and what employers need, often due to technological changes, shifts in the economy, or other long-term factors.
In 2003, the Canadian population was 31.6 million while the sum of the employed, unemployed and those not in the labour force was only 25.2 million. The difference can be explained by the non-labor force participants, which includes individuals who are not looking for work, such as retirees, students, those engaged in home-care, and individuals who are institutionalized.