Question:
Working age pop = 25m, Unemployed = 3m, Rate of Employment = 80%. The labour force participation rate in this economy is
(1) 20%.
(2) 30%.
(3) 40%.
(4) 50%.
(5) 60%.
Correct Answer:
(5)
Answer Explanation:
If the Employment rate is 80%, then the Unemployment rate is 20%. Unemployed = 20% of the Labour Force. If 3 million people = 20%, then the total Labour Force = 15 million. Labour Force Participation Rate (LFPR) = (Labour Force / Working-Age Pop) * 100 = (15m / 25m) * 100 = 60%.
Topic: Unemployment Year: 2017
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