UNEMPLOYMENT

Definition of Labour Force

****Remember a large labour force was one of the factors leading to economic growth. Eg.
China

� The labour force/work force/ labour pool is the number of available workers in a
country.
� It includes the population of persons of working age (18-65) who are currently employed
and those who are actively seeking employment (willing and able to work).
Which persons consist of the Labour Force?
Which persons do not consist of the labour
force?
Who is not part of the labour force?

� The labour force does not consist of:

❖ Retired persons
❖ Institutionalized persons(full time students, incarcerated persons, hospitalized)
❖ Persons under 16 years
❖ People not seeking work
❖ Permanently incapacitated persons and persons unable to work
❖ Housewives
Employment and Unemployment

? Employment is the state of having paid work. There is an agreement that the employee
will provide certain services in return of an hourly wage or a monthly salary
? Unemployment is the state of persons of working age actively seeking employment and
being unable to find a job
Activity

� 2017 5 a, d
Unemployment Rate

� The unemployment rate is defined as the proportion of individuals from the labour force
who are unemployed
� Formula:
Unemployment rate= Number unemployed X 100
Labour force
ACTIVITY
1) Calculate the unemployment rate in year 1 and year 2
2) Define the term Employment and Unemployment

YEAR 1 YEAR 2
Population 100,000 102,000
Population under 16 years 14,250 15,125
Retired population 23,750 23,250
Population of working age 5,000 5,750
not seeking work
Part-time workers seeking 3,325 3,815
work
Employed population 51,245 51,450
Exercise

� How has the large influx of immigrant labour from Venezuela impacted the supply of
labour, unemployment rates and the wage rate in Trinidad and Tobago?
� Which sectors in Trinidad and Tobago were mostly impacted?