Question

1. In 1867, the government employed 6% of the country’s workers. Since then, the country’s labour force has been growing an average 0.5% a year while the government’s employment has been growing an average 1% a year. What is the share of the government employment in the country’s labour force by 2011? Explain how you know. (2)

Answer 1

Years between 2011 and 1867 = 2011-1867= 144

Let x be the labor force in 1867. The government employment in 1867 is 6% = 0.06x

With an increase of 1% every year, % employed by government in 2011 = 0.06x{(100 + 1)/100}¹⁴⁴

= 0.06x(1.01)¹⁴⁴

= 0.25x

As x is the labor force in 1867. So with a steady increase of 0.5% in labor force, labor force in 2011 =

x{(100+0.5)/100}¹⁴⁴

= 2.05x

So, the percentage share of government employment =

0.25x/2.05x × 100 = 12.2%

Hope this helps. Do hit the thumbs up. Cheers!