Question

1. A labour force survey yields the following estimates:

Population 15 and older                                               38 million

Employed                                                      22 million

Not working, but actively seeking work                        2 million

Full-time students                                          3 million

Retired                                                                        5 million

Calculate

1. the labour force participation rate;

2. the employment rate;

3. the unemployment rate.

Answer 1

ANSWER:

A) Labor force participation rate = (Labor force / population 15 and older) * 100

Labor force = Employed + Not working , but actively seeking work = 22 + 2 = 24

Labor force participation rate = (24 / 38) * 100 = 0.6315 * 100 = 63.15%

B) Employment rate = (No of employed / Labor force) * 100 = (22 / 24) * 100 = 0.9166 * 100 = 91.66%

C) Unemployment rate = (Not working but actively seeking work / Labor force) * 100 = (2 / 24) * 100 = 0.0833 * 100 = 8.33%