Monday, February 15, 2016

Define the unemployment rate and labor-force participation rate. Discuss the differences between these two rates.



Define the unemployment rate and labor-force participation rate. Discuss the differences between these two rates.

#Parkin #11edition #Unemployment #CPI #Inflation #Chapter22

1 comment:

  1. Answer: The unemployment rate is defined as [(number of unemployed) ÷ (labor force)] × 100. and the labor force participation rate is defined as is [(labor force) ÷ (working-age population)] × 100. The two measures give different perspectives on the labor market. The labor force participation rate tells the percentage of the working-age population that is either working or is available for work. The unemployment rate tells the percentage of the people working or available for work (the labor force) who do not have jobs.

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