Question:
[Table Data] Year 1: Working-age=25m, Employed=12m, Unemployed=3m… In which year is the rate of unemployment 20% and labour force participation rate 60%?
(1) Year 1
(2) Year 2
(3) Year 3
(4) Year 4
(5) Year 5
Correct Answer:
(1)
Answer Explanation:
Labour Force (LF) = Employed + Unemployed. For Year 1, LF = $12m + 3m = 15m$. Unemployment Rate = (Unemployed / LF) $times 100 = (3 / 15) times 100 = 20%$. Labour Force Participation Rate (LFPR) = (LF / Working-age Pop) $times 100 = (15 / 25) times 100 = 60%$. Year 1 perfectly matches the required statistics.
Topic: Unemployment Year: 2019
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