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Module 1: Economics and employment

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Measurement of Unemployment - Participation

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Economics - Measurement of Unemployment - Participation

Participation

Everyone in the labour force is considered to be participating. The
participation rate is calculated as follows:

Example:

Consider the following figures and calculate the participation rate:

Unemployed people: 8000

Employed people: 92 000

People not seeking a job: 6000

Population over 15 years of age: 125 000

If, for example, the participation rate is 60%, this means that 60% of
people over the age of 15 years are either working or actively looking for
work. It also means that 40% of people over 15 years of age are not
participating, that is they do not have a job and are not looking for a
job. People who are not participating include the elderly, the physically
and mentally disabled, students and discouraged workers. If the
participation rate does change it's most likely due to changes in the
number of discouraged workers.

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