Answer to Question #277739 in Macroeconomics for Nemasetoni

Question

Population: 60 Million

Out of Labour force: 10milion

Unemployed People: 10million

Employed people: 25million

a.Calculate the non-participation rate

b. Calculate the labour force

c. Calculate the unemployment rate

d.calculate the labour force participation rate

Answer 1

Solution:

a.). Non-participation rate = People out of the labor force $\div$ Total adult working population x 100

People out of the labor force = 10 million

Total adult working population = 10 + 10 + 25 = 45 million

Non-participation rate = $(\frac{10}{45}) \times 100\% = 22.2\%$

b.). Labor force = Employed people + Unemployed people

Labor force = 25 + 10 = 35 million

 

c.). Unemployment rate = (Unemployed people $\div$ Total labor force) $\times$ 100

 Unemployment rate = $(\frac{10}{35}) \times 100\% = 28.6\%$

 

d.). Labor force participation rate = (People in the labor force $\div$ Total adult working population) $\times$ 100

Labor force participation rate = $(\frac{35}{45}) \times 100\% = 77.8\%$