Answer to Question #96778 in Macroeconomics for Shannon

Question

Calculate Labour force, employment rate, unemployment rate using
Labour force participation rate : 65,8%
working age population: 5 485 000
absorption rate : 48 %
unemployment rate (previous year) : 25%

Answer 1

labor force is the number of adult population seeking or in employment

$$\frac{65.8}{100}\times {5485000}=3609130$$

Since absorption rate is 48%,unemployment reduced by

$$0.48\times0.25=0.12$$

New unemployment rate is

$$0.25-0.12=0.13$$

13%

while employment rate is 87%