ECON 1100 Chapter Notes - Chapter 5: Labour Force Survey, Frictional Unemployment, Structural Unemployment
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Labour force = number employed + number of unemployed. Labour force the sum of employed and unemployed workers in the economy. If there are workers that drop out of the labour force, then the official unemployment rate understates the true unemployment rate in the economy: at least one of your answers is incorrect. The number of people unemployed is computed using the definition that the unemployment rate equals the number of unemployed divided by the sum of the number of unemployed and the number of employed. The labour force equals the employed plus the unemployed. The working-age population is computed using the definition that the labor force participation rate equals the labour force divided by the working-age population. It"s possi(cid:271)le to ha(cid:448)e the sa(cid:373)e report sayi(cid:374)g that the economy lost many jobs at the same time many new fulltime jobs were created because the number of jobs lost refers to the net number of jobs created.
