ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The labor force is the sum of the employed plus the unemployed, and the unemployment rate is the number unemployed divided by the number in the labor force. People are considered employed if they work at least one hour for pay or at their own business at any time during the week including the twelfth day of the month.

Detailed explanation-2: -Labor force participation rate, or participation rate In other words, the participation rate is the percentage of the population that is either working or actively looking for work. The labor force participation rate is calculated as: (Labor Force ÷ Civilian Noninstitutional Population) x 100.

Detailed explanation-3: -People with jobs are employed. People who are jobless, looking for a job, and available for work are unemployed. The labor force is made up of the employed and the unemployed. People who are neither employed nor unemployed are not in the labor force.

Detailed explanation-4: -In simple terms, the unemployment rate for any area is the number of area residents without a job and looking for work divided by the total number of area residents in the labor force.

Detailed explanation-5: -Unemployment rate – the percentage of people in the labour force that are unemployed. Participation rate – the percentage of people in the working-age population that are in the labour force.