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Economics
Topic Weight: 10%

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Unemployment & Labor Market Indicator

Total Population Work-Age Population (>16 years)

Labor Force Employed

Unemployment Rate

Employed Labor Force

Employed Working Age Population Labor Force Labor Force Participation Rate Working Age Population Employment to Population Rate
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Concept Checker
Number of Unemployed Number of Employed Number of People actively seeking employment 20,000 50,000 10,000

People (age > 16 years)

120,000

Then unemployment rate is: A. 33.34% B. 40%

C. 16.67%

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Answer
A
A person who is not working is considered to be unemployed person if he is available to work and
Has actively searched for work in the last four weeks Has been laid off from a job and is waiting to be recalled

Will start a new job in next 30 days

Number of unemployed = 20,000 Labor Force = Number of people either employed or actively seeking employment = 50,000 +10,000 =60,000 Unemployment Rate = (Number of Unemployed/Labor Force)

= (20,000/60,000) x100 = 33.34%

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