Measuring the

Labor Force
Igie Ronald Sarino Villancio
Agenda • The Concept of Supply
• The Concept of Labor
Supply
• Characterizing the Labor
Force
• Measuring the Labor Force

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The Concept of
Supply
A Refresher On Supply
If a firm supplies a good or service,
the firm
Supply is the amount of some
good or service a producer is willing to
1. Has the resources and technology supply at each price. Price is what the
to produce it, producer received for selling one unit
2. Can profit from producing it, and of a good or service. A rise in price
almost always leads to an increase in
3. Plans to produce it and sell it. the quantity supplied of that good or
service, while a fall in price will
decrease the quantity supplied.

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 • According to the law of supply,
The Law of Supply there is a direct or positive
relationship between price and
quantity supplied.
• Higher price leads to a higher
quantity supplied, while a lower
price leads to a lower quantity
supplied.

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The Supply Schedule and Supply Curve

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The Concept of
Labor Supply
The Dynamics of Work and Wages
What is Labor Labor Supply refers to
Supply? specifically to the number of
hours that workers are willing and
able to offer for work at a given
wage.

8
Labor Market in
Macroeconomic
Theory

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Labor Market in
Microeconomic
Theory

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Characterizing
the Labor Force
The Economically Active Population
 The labor force includes individuals who are:

Who is in the • Employed: People who are currently working,

either full-time or part-time.
Labor Force? • Unemployed: People who are actively looking
for work but are not currently employed.

People who are not working and not actively

seeking work are considered not in the labor
force. This includes: Retired people, students,
homemakers, disabled individuals, and
discouraged workers.

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Measuring the
Labor Force
Calculating Key Labor Market Metrics
Calculating the Size of the Labor Force
Labor Force = Employed + Unemployed
Particulars Amount (in millions)/ Percent rate*

Employed 155.76

Unemployed 6.31

Population 257.79

Labor force

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Calculating the Size of the Labor Force
Labor Force = Employed + Unemployed
Particulars Amount (in millions)/ Percent rate*

Employed 155.76

Unemployed 6.31

Population 257.79

Labor force 162.07

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Calculating the Labor Force
Participation Rate (LFPR)

Particulars Amount (in millions)/ Percent rate*

Employed 155.76

Unemployed 6.31

Population 257.79

Labor force 162.07

Labor force participation rate

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Calculating the Labor Force
Participation Rate (LFPR)

Particulars Amount (in millions)/ Percent rate*

Employed 155.76

Unemployed 6.31

Population 257.79

Labor force 162.07

Labor force participation rate *62.87%

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 Calculating the Employment-Population
Ratio
Employment-population ratio = Number of people employed
Total population

Particulars Amount (in millions)/ Percent Rate*

Employed 155.76

Unemployed 6.31

Population 257.79

Labor force 162.07

Labor force participation rate *62.87%

Employment-population ratio

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 Calculating the Employment-Population
Ratio
Employment-population ratio = Number of people employed
Total population

Particulars Amount (in millions)/ Percent Rate*

Employed 155.76

Unemployed 6.31

Population 257.79

Labor force 162.07

Labor force participation rate *62.87%

Employment-population ratio *60.42%

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Calculating the Employment Rate
Employment rate = Number of people employed
X 100
Labor force

Particulars Amount (in millions)/ Percent Rate*

Employed 155.76
Unemployed 6.31
Population 257.79
Labor force 162.07
Labor force participation rate *62.87%
Employment-population ratio *60.42%
Employment rate

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Calculating the Employment Rate
Employment rate = Number of people employed
X 100
Labor force

Particulars Amount (in millions)/ Percent Rate*

Employed 155.76

Unemployed 6.31

Population 257.79

Labor force 162.07

Labor force participation rate *62.87%

Employment-population ratio *60.42%

Employment rate *96.11%

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Calculating the Unemployment Rate
Unemployment rate = Number of people unemployed
X 100
Labor Force

Particulars Amount (in millions)/ Percent Rate*

Employed 155.76
Unemployed 6.31
Population 257.79
Labor force 162.07
Labor force participation rate *62.87%
Employment-population ratio *60.42%
Employment rate *96.11%
Unemployment rate
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Calculating the Unemployment Rate
Unemployment rate = Number of people unemployed
X 100
Labor Force

Particulars Amount (in millions)/ Percent Rate*

Employed 155.76
Unemployed 6.31
Population 257.79
Labor force 162.07
Labor force participation rate *62.87%
Employment-population ratio *60.42%
Employment rate *96.11%
Unemployment rate *3.89%
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 Lesson Recap . . .
1. Supply is the amount of some good or service a producer is willing to supply at
each price.
2. Quantity supplied is directly related to price.
3. Labor supply is the overall amount of work hours people are willing to provide.
4. Calculating the size of the labor force, the labor force participation rate, the
employment rate, and the unemployment rate, provide a comprehensive view
of the labor market. They are useful indicators for assessing the health of an
economy.

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Quiz . . .
Complete the table below.

Particulars Amount (in millions)/ Percent Rate*

Employed 150.56

Unemployed 8.35

Population 176.25

Labor force

Labor force participation rate

Employment-population ratio

Employment rate

Unemployment rate
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Quiz . . .
Complete the table below.

Particulars Amount (in millions)/ Percent Rate*

Employed 150.56

Unemployed 8.35

Population 176.25

Labor force 158.91

Labor force participation rate *90.16%

Employment-population ratio *85.42%

Employment rate *94.75%

Unemployment rate *5.25%

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Thank you!!!