Question

The ABS reported that in September 2007, a cycle peak, the working-age population was 16,808,200, the labour force was 10,979,300, and employment was 10,514,600. Calculate for that quarter the labour force participation rate and the unemployment rate.

Answer 1

Labor force participation rate = (Labor force / working age population)*100

=> Labor force participation rate = (10,979,300 / 16,808,200)*100

=> Labor force participation rate = 65.32%

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Labor force = employed + unemployed

=> 10,979,300 = 10,514,600 + unemployed

=>Unemployed = 10,979,300 - 10,514,600

=> Unemployed = 464,700

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Unemployment rate = (Unemployed / Labor force)*100

=> Unemployment rate = (464,700 / 10,979,300)*100

=> Unemployment rate = 4.23%