Topic 4: Labour Markets

Question 1

How to calculate the unemployment rate?

Answer 1

𝑈𝑛𝑒𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡 𝑅𝑎𝑡𝑒 (%) =
(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑒𝑟𝑠𝑜𝑛𝑠 𝑢𝑛𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑/
𝑇𝑜𝑡𝑎𝑙 𝑙𝑎𝑏𝑜𝑢𝑟 𝑓𝑜𝑟𝑐𝑒) × 100

Question 2

How to calculate the labour force participation rate?

Answer 2

Participation rate (%) = (Labour force / WOeking age population) x 100