00:01
Okay, so we're going to be looking here at the comparison of different circumstances to how they affect the unemployment rate and the labor participation rate.
00:25
Labor participation.
00:31
Okay, so before we can look at the different scenarios that are given, we might just want to find out how we define them.
00:40
Basically.
00:42
So the unemployment rate is actually just the number of unemployed as a percentage of a labour force.
00:53
And the labour force is defined by those that are between the ages of 15 to 64.
00:59
So that's the labour force as a percentage.
01:04
That's basically what the unemployment rate is.
01:06
But the labour force participation rate, so the labour force participation rate on the other hand is basically calculated as labour force.
01:21
So this is the labour force divided by the total working age population.
01:34
Total working age population.
01:45
Okay, so basically that's what the labour force participation rate is.
01:51
So with this background, we can start looking at different scenarios.
01:56
We look at the first scenario to say, john finds a job.
02:05
What is going to happen to the unemployment rate, unemployment rate, and what is going to happen to the labor force participation rate? i'll just call it lpr unemployment rate, which is, uh, call it as you, as you are.
02:31
Okay, so basically the unemployment rate is going to definitely decrease because john has found a job.
02:39
We know we have one less person seeking employment.
02:43
But when it comes to the labor force participation, uh, this remains the same.
02:49
So i'll use horizontal errors there to indicate no change.
02:54
Uh, downward arrow there is going to be decrease.
02:56
Upward areas going to be an increase...