Answer to Question #172023 in Macroeconomics for Sarthak

Question

1.     Statistics Canada reported the following data for 2015:

Labor force: 20.4m, employment: 17m, working age Population: 26.7m. Calculate the number of people unemployed in 2015, unemployment rate and labor force participation rate. 

Answer 1

i) Number of people unemployed =Labor Force $-$ Employed population

$=20. 4M-17M$

$=3.4M$

ii) Unemployment Rate ;

$=\frac {Unemployed} {Labor Force} ×100$

$=\frac {3.4M}{20.4}=16.67\%$

iii) Labor Force Participation Rate ;is given by Labor Force divided by working-age population

$=\frac {Labor Force } {Working Age Population}$

=$\frac{20.4}{26.7}×100 =76.4\%$