Examine Labor Force
Participation , unemployment rate
and Inflation Rate…
Presented by:
Name : Israt Jahan
Roll:20
Course name : Principles Of Economics 2
Institute Of Health Economics
University Of Dhaka
Inflation Rate:
◦Inflation is a quantitative measure of the rate at which
the average price level of a basket of selected goods
and services in an economy increases over a period of
time.
The inflation rate of Bangladesh from the year 2007 to
2012:
Year
CPI
Inflation rate
2007
103.5
9.11%
2008
112.7
8.9%
2009
118.3
4.91%
2010
129.4
9.37%
2011
144.2
11.46%
2012
153.2
6.23%
Graph of Inflation Rate:
Relationship between Inflation and unemployment rate:
◦When unemployment rates increase, Inflation
decreases.
◦As unemployment rates decreases , Inflation increases.
Relationship between Inflation and unemployment rate:
Year
CPI
Labor
Force(million)
Working age
Unemployment
population(million
)
2007
103.5
47.4
83.3
3.77%
2008
112.7
48.1
84.7
4.08%
2009
118.3
48.7
85.9
5%
2010
129.4
49.1
86.6
3.38%
2011
144.2
49.4
87.4
3.91%
2012
153.2
50
88.5
4.43%
Labor Force Participation rate:
◦ If unemployment rate increases then labor force participation rate will
decrease.
◦ If unemployment rate decreases then labor force participation rate
will increase.
◦ It works like vice-versa
Labor Force Participation rate:
Year
Labor Force(million)
Working age
population(million)
Labor force
participation rate
2007
47.4
83.3
56.9%
2008
48.1
84.7
56.81%
2009
48.7
85.9
56.72%
2010
49.1
86.6
56.69%
2011
49.4
87.4
56.52%
2012
50
88.5
56.5%
Relationship between labor force participation rate and
unemployment rate:
Relationship among Inflation rate , unemployment rate and labor
force participation rate:
There is a strong relationship between inflation and unemployment rate . Relationship between
unemployment rate and inflation is negative.Because if he inflation rate increases of a country
money supply also increses.if money supply increases then there occurred many job opportunities
which demand for labor force.Thus, the unemployment rate decrease.
Last of all , It can be said that, there are a strong relationship among inflation rate ,labor force
participation rate and unemploynent rate.