(a)
Identify the
(a)
Explanation of Solution
The unemployment rate can be calculated using the formula given below:
The labor force is the sum of the unemployed group and the employed group. Therefore, since the total labor force is 160 million and the employment is 152 million, the number of people unemployed is 8 million
Substitute the values in Eqution-1 to get the value of unemployment rate as follows:
Thus, the unemployment rate is 5%.
Unemployment rate: The unemployment rate indicates the percentage of population that is without jobs but actively seeking employment.
(b)
Identify the labor force participation rate.
(b)
Explanation of Solution
Since the working age population is 254 million and the labor force is 160 million, the labor force participation rate can be calculated as follows:
Thus, the labor force participation rate is around 63%.
Labor force participation rate: The labor force participation rate indicates the percentage of the population that is in the labor force.
(c)
Identify the employment-to-population rate.
(c)
Explanation of Solution
Since the working age population is 254 million and the number of people employed is 152 million, the employment-to-population rate can be calculated as follows:
Thus, the employment-to-population rate is 59.8%.
Employment-to-population ratio: The employment-to-population ratio indicates employment as a percentage of working age population.
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