Question

Suppose that the population over age 16 (adult population) is 150 million and the number of discouraged workers is 5 million. Moreover, in the month of November 2019, the number of people with full-time jobs was 70 million, and the number of people with part-time jobs was 5 million. If the labour force was 90 million, then calculate values of the following variables.

(a). Unemployment rate in November 2019.

(b). Labour force participation rate in November 2019.

Answer 1

Ans:

Labour force = employed + unemployed

Employed = 70 million + 5 million

= 75 million

Unemployed = Labour force - Employed

= 90 million - 75 million

= 15 million

a)

Unemployment rate = (Unemployed / Labour force) * 100

= (15 million / 90 million) * 100

= 16.67%

b)

Labour force participation rate = (Labour force / Adult population) * 100

= (90 million / 150 million) * 100

= 60%