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Q49 (CDS-II/2026) Economy › Growth, Development, Poverty & Employment

If Labour Force Participation Rate (LFPR) is 50% and Worker Population Ratio (WPR) is 45%, what is the Unemployment Rate ?

Result
Your answer: —  ·  Correct: B

Explanation

To find the Unemployment Rate (UR), we must use the definitions provided by the National Sample Survey Office (NSSO):

  • Labour Force Participation Rate (LFPR): (Labour Force / Total Population) × 100
  • Worker Population Ratio (WPR): (Employed / Total Population) × 100
  • Unemployment Rate (UR): (Unemployed / Labour Force) × 100

Assuming a total population of 100:
Labour Force = 50 (from LFPR 50%)
Employed = 45 (from WPR 45%)
Unemployed = Labour Force - Employed = 50 - 45 = 5

Now, calculate UR:
UR = (Unemployed / Labour Force) × 100
UR = (5 / 50) × 100 = 10%.

Therefore, while 5% of the total population is unemployed, the unemployment rate (which is calculated relative to the labour force, not the total population) is 10%.

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SIMILAR QUESTIONS

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Consider the following statements : According to the Second Annual Employment-Unemployment Survey Report, 2011-2012 conducted by the Labour Bureau, Government of India 1. unemployment rate in the country during the period has come down significantly over the previous year 2. Gujarat tops the list of least unemployed among all Indian States during the period Which of the statements given above is/are correct?