Examine the relationship among Labor
force participation rate –Unemployment
rate and Inflation rate by realistic data form
2012 to 2016 in Bangladesh.
WELCOME TO
PRESENTATION
PRINCIPLES OF ECONOMICS 2
UNIVERSITY OF DHAKA
SUBMITTED TO:
Dr. NASRIN SULTANA
Associate Professor
IHE-University of Dhaka
SUBMITTED BY:
JANNATUL FERDOUS
ROLL:028
IHE-University of Dhaka
Labor Force : Labor force is defined as the section of the working population in the age group of 16-64 in the economy currently
employed or seeking employment.
Labor force participation rate:
𝐿𝑎𝑏𝑜𝑟 𝑓𝑜𝑟𝑐𝑒
×100
𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝑎𝑔𝑒 𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛
Table:1
Year
Labor force participaton rate (%)
2012
56.6
2013
56.54
2014
56.51
2015
56.47
2016
56.45
Source:World Bank
from the Table ,we can draw a graph of labor force participation rate
Unemployment Rate
56,8
56,6
56,4
2012
2013
2014
Fig:Labor Force Participation Rate
2015
2016
Year
Unemployment Rate:Unempolyment rateb refers to the share of the labor force that is without work but available for and
seeking work.
Unemployment Rate:
𝑇𝑜𝑡𝑎𝑙 𝑢𝑛𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑
×100
𝐿𝑎𝑏𝑜𝑟 𝐹𝑜𝑟𝑐𝑒
Now below the Unemployment Rate in Bangladesh from 2012 to 2016
Table:2
Year
Unemployment rate (%)
2012
3.91
2013
4.43
2014
4.41
2015
4.42
2016
4.35
Source:World Bank
from the Table2,we can draw a graph of Unemployment rate
Unemployment rate
4,6
4,4
4,2
4
3,8
3,6
2012
2013
2014
2015
2016
Year
Fig2:Unemployment Rate
Inflation Rate: Inflation rate is the percentage increase in the overall level of prices.
𝐶𝑃𝐼 𝑜𝑓 𝑡ℎ𝑒 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑟𝑎𝑟−𝐶𝑃𝐼 𝑜𝑓 𝑡ℎ𝑒 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑟𝑎𝑟
Inflation Rate=
𝐶𝑃𝐼 𝑜𝑓 𝑡ℎ𝑒 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑟𝑎𝑟
Now below the Inflation Rate in Bangladesh from 2012 to 2016
Table:3
Year
CPI
Inflation Rate
2012
123.3
6.22
2013
132.33
7.53
2014
140.41
6.98
2015
148.97
6.19
2016
156.46
5.51
Source: World Bank
from the Table3,we can draw a graph of Inflation rate
Year
8
6
4
2
0
2012
2013
2014
2015
2016
Inflation Rate
Fig: Inflation Rate
From all the Table’s data we can write a Table
Year
Labor force participaton rate (%)
Unemployment rate (%)
Inflation rate
2012
56.6
3.91
6.22
2013
56.54
4.43
7.53
2014
56.51
4.41
6.98
2015
56.47
4.42
6.19
2016
56.45
4.35
5.51
If Inflation increases, there will be made more workplace, then labor force demand more at
this solution people get more work by this process unemployment rate decreases.
So there is a valid and strong relationship among them