Lecture 8 (ch 5) Employment And Unemployment Flashcards
How do we calculate the Labour Force Participation Rate (LFPR)?
LFPR = labour force / population of working age * 100
Where
Labour force = economically active population
Population of working age = 15 to 64 years
How do we calculate the Labour Absorption Rate (LAR)?
LAR = employed / total working age population * 100
How do we calculate the employment coefficient?
Employment coefficient = % change in employment / % change in GDP * 100
This is calculated over a period of 5 years or more
What is the other name for the employment coefficient?
What does it measure?
The production elasticity of employment
It measures the responsiveness of employment to economic growth
What is the formulaic definition of marginal labour absorption capacity (marginal LAC)?
Marginal LAC = increase in employment / increase in labour force (EAP)
Where
EAP = Economically Active Population
