Unemployment

Question 1

Labour force participation rate

Answer 1

(Labour force/population of working age) x 100

Question 2

Unemployed

Answer 2

The part of the economically active/labour force without paid work, available for work, and actively seeking employment at the going wage rate.

Question 3

Formula for unemployment rate

Answer 3

Unemployment rate = (unemployed/unemployed+employed) x 100

Question 4

Formula for employment rate

Answer 4

(Number of employed workers/ population of working age) x 100

Question 5

Definition of underemployed

Answer 5

Workers who are in paid work, but experiencing a lack of enough paid work or work that does not make full use of their skills and abilities.

Question 6

Advantages of labour force survey

Answer 6

• accurate reflection of the number of people who are unemployed than the claimant count
  -other information about the nature of unemployment and employment is collected in the survey
• the LFS is an internationally comparable measure