Question

<1> unemployment rate in year 1 = 17.2 million/120 million)*100 = 6 percent unemployment rate in year 2 = (6.7 million/119.5 million) x 100 = 5.6 percent <2> the number of people employed in year 1 = 120 million-7.2 million = 112.8 million the number of people employed in year 2 = 119.5 million-6.7 million = 112.8 million <3> the labor force participation rate in year 1 = (120 million/200million) x 100 = 60 percent the labor force participation rate in year 2 = (119.5 million/200 million) x 100 = 59.75 percent <4> From the first year to the second year, the adult population stayed the same, but the labor force decreased, resulting in the reduction of labor force participation rate. The reason for this change may be that with the increase of age, some people enter the age range of the labor force, but some people are beyond this age range, and the number of people who exceed the range this year is more than that of people entered. Meanwhile, the number of unemployed people has decreased, which is one of reasons for the decline in the unemployment rate.

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Answer 1

50.50 <iy unomployment scale in yeame ) = (7.2 million /120 million) X100 = 6 percent. loo people, 6 people remain unemployed in This means in every 1991 - year. svom sonson unemployment reale in year 25 ( 6-7 million ) 120119-5 million) x 100 2 15.6 percent. This means in every 100 people who present in labore force, 5-6 people remains unemployed in yeant 2. are

() The number of people employed in yeame la 120 milliona 7.2 million 112.8 million The total number of people who participated to labor force are employed in yeared is the difference between numbon of people who actively participated in labor force and the number of people who otemain limemployed. The member of people employed in year 2a 119.5 million 6.7 million million Diva 112,8 are The total number of people who employed in years is the difference between between number of people who actively participated in labor fonce and the number of people who remain cinemployed in the same years köp the labore force, parckcepakon rate im year la (120milion 200 million) x 100 = 60 percent This means the society in year 1: 60 people actively participated in the labore force on in obrere Words among every 100 people, bo people were actively looking for in every too people who are presentin Job in year 1.

The labor forece participation rate in yeame 2 = 59.75 Porcont. (119.5 million poo million) %100 in Tlus means in je on every loo people who are present in the sociely in ycare 2, 59.76 percent people achrely participated labor force. In other words, among evercy 100 people and by 59.76 people were actively looking for a job in year: 2. Now in the above discussion, have two major findings Those decreased fonce parking parchicipation sale hall from 6o percent in year to 59.76 percent in yeare a though total number of population remained to constant at . We amci → it Labor force 200 million enemployement reate decreased from 6 percent in yeared ato 5.6 percent in yeare 2. The reason behind decrease in labor force paradies pation rate can be explormed by the difference between med entiranda in the labore force and those who fear left the labon force. The number of people who entered in labon force in yeare. 2. might be smaller than the number of people who left the labor force. In other words the people who exceed the age rang tool age range be gore cattore than the number of people who enton the Working might age range.

These may also be abhore reasons like it some people may prefer to romain out of labor force voluntamily because they might not get be able good to get sulable job for them Different gost unemploym Wage programs organized by government may also insient some people to remain outside labore force ivity in the overall population, the number of oldage people might be higher than the younger ones. There might be different reasons too fore decrease in amemployment rate. Those are as follows: iy Technological progress : The same economy as a whole might have progressed in technological famovation. This lead the economy to create more Job opportunities and as a result of this unemployment reake decreases a iny Foreign investment is A good amount of foreign investment in the economy crcales more job opportunities. when foreign companies invest in an economy and builds offices, factories, hospitals etc. It toets. nequires employ people in these places. This decreases esempler Unemployment rate

ij quercase in demand for labons. might face economy an keer overall increase in labore demand. As a result more a number of labore gets employed and unemployment rate falls. This may also also happen if the labor force participation rare falls to a good good extent. ich Bom in business Cyde:7 The economy may experience a boom situation in business cycle in which of the economy flourish as a whole and expands to get more people employed. This corelanly readustes, reduces unemployment rate. i Govt. policies bifterren't government policies, which provide subsidy and form cut to different organizations, Asas and induce the to expand and employ more more people from labore force