a. Labor force participation rate is the labor force as percentage of population with at least 16 years of age. b. Unemployment rate is calculated as total number of unemployed individuals divided by number of people in the labor force. c. Employment-population ratio is as number of people who are working as percentage of people available for work. It measures the country's working age population that is employed.
Number of individual in working age = 235,272,000
Number of employed people = 154,731,000
Unemployment rate is the percentage of people in economy who are willing able to work but who are not working.
Official unemployment rate underestimate the problem of unemployment because of following reasons:
1. It does not include discouraged workers
2. It does not include underemployed workers
Discouraged workers are those workers who have stoppedUnderemployed workers are those workers who are underutilized. Underutilized means they are employed in a work which do not fully utilizes their productive potential. Underutilized workers include part time workers who would prefer full employment.
Official numbers understates the actual unemployment because sizeable numbers of officially unemployed are actually working. A construction worker for example, who is unemployed, may be playing in the band in the night. He may not officially report his activity because he or she wants to avoid paying taxes on his or her earnings as musician. Many officially unemployed have alternative source of income.
Unemployment rate is the percentage of total number of unemployed people who are activelya.The tenure of jobs in two countries basically depended upon the culture of the countries. The people of country J tend to be moreb.If the changes in jobs is due to career upgradation then system in country U is better but if it is due to effect of business cycles or economic instability, then it can be said that country J's system is better. Therefore, without additional information there is no way to tell which system is better.
c.When there was recession in country J but not in country U, then most probably the tenure of jobs in country J will decline and as the economy of country U is rising so the tenure of jobs will increase.