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How Is the Unemployment Rate Calculated?

Unfortunately, I cannot give you an exact percentage of the human population that is employed as it constantly fluctuates and there are many factors that influence employment rates such as economic conditions, political stability, and cultural values. However, according to the International Labour Organization (ILO), as of 2021, the global employment-to-population ratio (the proportion of employed people to the working-age population) was around 58.4%. But please note that this number can vary significantly across countries and regions.

The age range of the labor force worldwide can vary depending on how it is defined and measured. However, according to the International Labour Organization (ILO), the “working-age population” is typically defined as people aged 15-64 years old. Therefore, the age range of the labor force would generally fall within this 15-64 age range. However, it’s important to note that the age range can vary by country and region, and there may be different policies and cultural factors that influence the age at which people enter and exit the labor force.

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Unemployment rate is an important economic indicator that measures the percentage of people who are actively seeking employment but are unable to find work.

The calculation of unemployment rate is done by dividing the number of unemployed individuals by the total labor force, which includes all individuals who are employed or seeking employment.

The history of unemployment rate calculations dates back to the early 20th century when the US Bureau of Labor Statistics (BLS) first began collecting data on employment and unemployment. The BLS developed the Current Population Survey (CPS) in 1940, which is still used today to collect monthly data on unemployment and other labor market statistics.

The CPS surveys a sample of households and asks individuals about their employment status during the previous week. Individuals who are classified as unemployed are those who are currently without a job but are actively seeking employment and are available to work.

Once the CPS data is collected, it is used to calculate the unemployment rate by dividing the number of unemployed individuals by the total labor force. The labor force is calculated as the sum of employed and unemployed individuals.

It is important to note that the unemployment rate does not include individuals who are not actively seeking employment or those who are employed part-time but would prefer full-time work. These individuals are considered underemployed and are not included in the unemployment rate calculation.

In Thailand, the calculation of the unemployment rate is similar to that of other countries. The National Statistical Office (NSO) conducts a quarterly Labor Force Survey to collect data on employment and unemployment. The survey asks individuals about their employment status during the previous week and categorizes them as employed, unemployed, or not in the labor force.

Once the data is collected, the NSO calculates the unemployment rate by dividing the number of unemployed individuals by the total labor force. The labor force is calculated as the sum of employed and unemployed individuals.

The table above shows the latest unemployment rates for selected countries around the world, as of February 2023. It is interesting to note that the unemployment rates range from as low as 2% in Singapore and Switzerland to as high as 32.7% in South Africa.

The unemployment rate is influenced by various factors such as economic growth, government policies, labor force participation rate, and technological advancements. It is also affected by the birth rate, as a high birth rate can result in a larger labor force and potentially higher unemployment rates if there are not enough job opportunities to meet the demand.

The table also includes the top 10 countries with the highest and lowest birth rates, according to the CIA World Factbook 2021 estimate. Niger has the highest birth rate in the world at 47.28 per 1000 people, while Monaco has the lowest at 6.63 per 1000 people.

When we look at the correlation between birth rate and unemployment rate, we can see that countries with higher birth rates do not necessarily have higher unemployment rates. For instance, Singapore and Switzerland have relatively low birth rates, but also low unemployment rates. Similarly, Japan has a low birth rate but a relatively low unemployment rate as well.

On the other hand, some countries with high birth rates also have high unemployment rates, such as South Africa and Spain. However, it is important to note that other factors besides birth rate also contribute to the unemployment rate in these countries.

It is also interesting to note that South Korea appears on both the list of countries with the lowest birth rate and the list of countries with a relatively low unemployment rate. This may be due to various factors such as their highly educated workforce, strong economy, and government policies to promote job creation.

In conclusion, the unemployment rate is a crucial economic indicator that is used to measure the health of the labor market. Its calculation involves collecting data on employment and unemployment and dividing the number of unemployed individuals by the total labor force. The history of unemployment rate calculations dates back to the early 20th century, and it is still used today to monitor labor market trends and inform economic policies.

CountryUnemployment Rate (%)Birth Rate (per 1000 people)
Singapore2
Switzerland2.1
Japan2.47.00
South Korea2.96.89
Mexico3
Netherlands3.6
Russia3.6
United States3.6
Australia3.7
United Kingdom3.7
Canada5
China5.5
Germany5.5
Saudi Arabia5.8
Indonesia5.86
Euro Area6.7
Argentina7.1
India7.1
France7.2
Brazil7.9
Italy7.9
Turkey9.7
Spain12.878.05
South Africa32.7

The top 10 countries with the highest birth rate and the lowest birth rate according to the CIA World Factbook are also listed:

CountryBirth Rate (per 1000 people)
Niger47.28
Angola42.22
Mali41.60 (tie)
Uganda41.60 (tie)
Benin41.55
Chad41.05
Congo (Dem Rep of)40.53
South Sudan38.26
Somalia38.25
Mozambique38.03
Monaco6.63
South Korea6.89
Andorra6.91
Japan7.00
Taiwan7.43
Greece7.72
Puerto Rico7.90 (tie)
Portugal8.02
Spain8.05 (tie)
Bulgaria8.15

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