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In the context of labour market of an economy, consider the following statements :
1. Labour Force Participation Rate is defined as the share of employed and unemployed workers to the total working-age population.
2. Worker Population Ratio is defined as the share of unemployed workers to the total working-age population.
3. The usual activity status of a person is determined on the basis of the activities pursued by the person during the specified reference period of the last 365 days preceding the date of survey.
Which of the statements given above is/are correct?
Explanation
Statement 1 is correct: The Labour Force Participation Rate (LFPR) is defined as the percentage of persons in the labour force (i.e., those who are either working or seeking/available for work) in the population. In standard economic terms, it is often calculated relative to the working-age population.
Statement 2 is incorrect: The Worker Population Ratio (WPR) is defined as the percentage of employed persons in the population. It measures the proportion of the population that is actively contributing to the economy. The statement incorrectly identifies it as the share of unemployed workers.
Statement 3 is correct: As per the National Statistical Office (NSO), the usual activity status (US) of a person is determined based on the activities pursued by the person during the reference period of the last 365 days preceding the date of survey. This includes both principal status and subsidiary status.