WELCOME TO MY PRESENTATION!
COURSE NAME: PRINCIPLES OF ECONOMICS
COURSE NUMBER: HE-105
INSTITUTE OF HEALTH ECONOMICS
NAME: MD. MAZHARUL KARIM AKIB
ROLL NO: 047
SESSION: 2018-19
YEAR: 2010-2015
Relationship between Labor Force Participation
Rate, Unemployment Rate & Inflation Rate
LABOR FORCE & PARTICIPATION RATE
LABOR FORCE: The amount of labor available for producing
goods and services; all employed plus unemployed persons.
Labor Force Participation Rate: The fraction of the adult
population that “participates” in labor force.
Labor Force Participation rate= (Labor force/Working age
population)*100
[Working age Population- age between (16-64) years]
UNEMPLOYMENT & UNEMPLOYMENT RATE
Unemployment: Not employed but looking for a job.
Types: There are different kinds of unemployment. These
are: 1. Frictional: The gap between the join of a job.
2. Cyclical: Seeking but not getting a job.
Unemployment Rate: Percentage of labor that is
unemployed.
Unemployment Rate= (Total unemployment/Labor
force)*100
CPI & INFLATION RATE
CPI (Consumer Price Index): CPI measures the trend in
the average goods and services bought by consumers.
Inflation: The continuous and persistent increase in
general price level of all goods and services in an
economy is known as inflation.
Inflation Rate= (Current year CPI- Last year
CPI)*100/Last year CPI
Labor Force Participation Rate & Unemployment
rate (2010-2015)
YEAR
L.F.P.R.
U.R.
2010
56.703
3.379
2011
56.641
3.718
2012
56.590
4.048
2013
56.548
4.426
2014
56.511
4.411
2015
56.476
4.416
From the above data, we can see that, in 2015 the labor force
participation rate has been diminished than the before years. Also
we can see that the unemployment rate also provoked.
Graph of L.F.P.R & U.R.
U.R
L.F.P.R
2015
4,416
2014
4,411
2013
2011
2012
2013
2014
2015
4,426
2012
4,048
2011
3,718
3
3,5
4
4,5
CPI from 2010-2015
YEAR
CPI
2010
100
2011
110.70
2012
117.59
2013
126.44
2014
135.28
2015
143.66
SOURCE: INDEX MUNDI
Calculation of Inflation Rate
Inflation Rate (2011)= (110.70-100)*100/100= 10.7%
Inflation Rate (2012)= (117.59-110.70)*100/110.70= 6.22%
Inflation Rate (2013)= (126.44-117.59)*100/117.59= 7.53%
Inflation Rate (2014)= (135.28-126.44)*100/126.44= 6.99%
Inflation Rate (2015)= (143.66-135.28)*100/135.28= 6.19%
From this we can see that inflation rate in 2015 has been
abated.
INFLATION RATE (2011-2015)
12
10,7
10
7,53
8
6,99
6,22
6,19
6
4
2
0
2011
2012
2013
2014
2015
THE WHOLE DATA AT A KEEK
YEAR
L.F.P.R
INFLATION RATE
U.R.
2011
56.641
10.7%
3.718
2012
56.590
6.22%
4.048
2013
56.548
7.53%
4.426
2014
56.511
6.99%
4.411
2015
56.476
6.19%
4.416
OBSERVATION
►At the year 2011, we can take a look to labor force participation rate that was 56.641,
inflation rate 10.7% and unemployment rate 3.718. From 2011 to 2012, labor force
participation rate has been diminished, inflation rate decreased whether the unemployment
rate not abated.
► From 2012-2013, the unemployment rate & inflation rate have been increased. On the
other hand, the labor participation rate was decreased.
► In 2013-2014, the whole three rates were decreased respectively.
► At the year 2015, the labor force participation rate and inflation rate have been diminished.
But the unemployment rate was increased by the times.
RESULT BASED ON REALISTIC DATA
►Unemployment rate and inflation rate has an inverse
correlation or negative relationship
► Unemployment rate and labor force participation rate has an
inverse correlation or negative relationship
THANK YOU!