ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The primary factor in determining whom to count as unemployed is that the person be actively seeking employment. “Wanting a job” is not enough to be counted as unemployed. Who is Not in the Labor Force? People are considered not in the labor force if they are not working and are not actively seeking work.

Detailed explanation-2: -Persons who are neither employed nor unemployed are not in the labor force. This category includes retired persons, students, those taking care of children or other family members, and others who are neither working nor seeking work.

Detailed explanation-3: -The labor force includes all people age 16 and older who are classified as either employed and unemployed, as defined below. Conceptually, the labor force level is the number of people who are either working or actively looking for work.

Detailed explanation-4: -Percentage of employed individuals = Number of people working / Working-age population x 100. Total percentage of unemployed = Unemployed individuals / Working-age population x 100. Unemployment rate = Total number unemployed / Total number in labor force x 100. 13-Jan-2021