Define Labour Force

This consists of all those people within the age group of 18 years to 65 years who are either working (employed) or actively looking for employment.

Excluded from the above age group are:

• Mentally and physically handicapped persons
• Full-time students
• Housewives

$LabourForce=Employed+Unemployed$

What is Unemployment?

This is defined as the number of persons between the ages of 18 years and 65 years who are willing and able to work but is unable to find work.

Excluded from the above age group are:

• Housewives
• Full-time students
• Mentally and Physically handicapped persons

What is Underemployment?

This refers to a situation whereby a person is working in a position which requires a capacity less than his or her skill level, qualification or experience level.

For example: an engineer employed as a mechanic.

Difference between Unemployment and Underemployment

Unemployment refers to anyone between the ages of 18 and 65 years who are willing and able to work but is unable to find which, while underemployment is a situation where persons are employed but the posoition requires a capacity less than his/her skills, qualifications and experiences.

What is the Unemployment Rate (Un)?

This is a percentage or proportion of the labour force that is unemployed.

$$UnemploymentRate=\frac{Unemployed}{LabourForce}\times 100$$

OR

$$UnemploymentRate=\frac{Unemployed}{Employed+Unemployed}\times 100$$

What is the labour force participation rate?

This is the percentage or proportion of individuals from the overall population who are in the labour force.

$$LabourForceParticipationRate=\frac{LabourForce}{TotalPopulation}\times 100$$

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