Question

1. In December 2002, Dominica had a labour force of 14,757,000, employment of 13,197,000, and there were 7,994,000 people not in the labour force.

1. Calculate the unemployment rate (in %).

2. Calculate the labour force participation rate (in %).

Answer 1

Answer: Given, Labour Force=14,757,000 and Employment=13,197,000

But People not in the Labour force=7,994,000

We know that Total Population=Labour Force+People not in the Labour force=14757000+7994000=22751000

and Labour Force=Employment+Unemployment

Thus, Unemployment=Labour Force-Employment=14757000 - 13197000=1560000

And Total Population=Labour Force+People not in the Labour force=14757000+7994000 =22751000

Hence, the unemployment rate (in %)=(Unemployment/Labour Force)*100=(1560000/14757000)*100=10.57%

And the Labour force participation rate (in %)=(Labour Force/Total Population)*100=(14757000/22751000)*100=64.86%