00:01
Okay, so this question looks at the limitations of unemployment, limitations of the unemployment rate.
00:33
Now, by a simple definition, the unemployment rate simply is the percentage of the total labor force that is unemployed.
00:49
You know, but actively seeking employment and willing to work.
00:56
But we'll come to that shortly.
00:58
So if you have your labor force, it can be every individual within the population age group of 15 to 64, if you consider that to be the labor force, the percentage of that population, for instance, if you consider that there's probably a labor force, the percentage of that population, for instance, if you consider that this probably, is the 4 % for instance, 4 % of the entire labour force.
01:34
All the individuals that fall within the bracket, that's simply what unemployment rate is.
01:44
So it's the percentage of the total labour force.
01:52
All right.
01:55
So that's it.
01:56
Now the question arises to say, are there just one definition of unemployment rate? well, in some instances you find that there is a narrow definition and the broad definition, narrow and broad definitions.
02:19
Why is this necessary? because you'll find that some of the individuals that fall within that age or labor force range that you're referring to maybe if you say 16 to 64, everyone who's there is within the labour force.
02:42
Some of them are students.
02:44
So obviously you start exempting students there, all right? so students that are actively studying and therefore cannot participate in employment...