Question:
The table below summarises the labour market situation in a hypothetical economy… Based on this information which of the following is an accurate statement?
(1) The rate of unemployment has increased from 2018 to 2020.
(2) The rate of unemployment has decreased from 2018 to 2020.
(3) The labour force participation rate has increased from 60% in 2018 to 67% in 2020.
(4) The labour force participation rate has decreased from 2018 to 2020.
(5) Although the population has grown the labour force has remained constant from 2018 to 2020.
Correct Answer:
(3)
Answer Explanation:
The Labour Force Participation Rate (LFPR) is calculated as (Labour Force / Working-Age Population) x 100. Based on the calculated data points, the proportion of the working-age population actively engaging in the labour market rose from 60% to 67% over the two-year period.
Topic: Unemployment Year: 2021
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