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How Would the Unemployment Rate and the Labour Force Participation

question 107

Essay

How would the unemployment rate and the labour force participation rate change if discouraged workers were counted as 'unemployed' rather than as being in the 'not-in-the-labour force' category? Show this using the formula for both measurements.
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Definitions:

Literacy

The ability to read and write at a level adequate for communication or comprehension.

Economic Growth

The increase in the amount of goods and services produced by an economy over a period of time.

Declining Savings

A situation where the amount of money saved by individuals or entities decreases over time.

Productivity Growth

An increase over time in the output of goods and services per unit of input, reflecting improvements in technology, processes, or efficiency.

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