Question

The labor force participation and the employment-population ratio over the same ten-year period and how these measures may have influenced the unemployment rate

Answer 1

Unemployment

unemployment means, it is the situation where a person who is willing to work doesn't get employment.

Unemployment rate

It is calculated by using the following formula

Unemployment rate = number of employed people÷number of people in the labour force

Labour force participation

it include both employed and unemployed. It means that number of people who are either employed or are actively looking for job.

Employment Population ratio

it is calculated by using the formula

Employment population ratio = total number of people employed ÷total number of people in working age.

For an example if an area consist of 45 million people of working age and from that only 30 million people are employed. Employment population ratio calculated by

30/45*100= 66.66%

Means that 66.66% people are employed in that area.

Following are the facts that how same labour participation ratio and employment population ratio influence on unemployment.

1.unemployed persons who are eagerly searching for a job became employed. As a result the number of unemployed decrease and employed increase. So the final after effect is that labour participation rate remains same.

2.The people who is not included in or skipped in calculating labour force participation became employed or may unemployed. And also who is searching job became employed. So labour force increase. Unemployed remains same.

3.suppose unemployed workers who is fed up with searching job or lost hope in searching job ends their searching and leaves from labour participation . So as a result unemployment and labour force decreases.