CFA Economics session focuses on the microeconomic principles used to describe the marketplace behavior of consumers and firms. The first reading explains the concepts and tools of demand and supply analysis—the study of how buyers and sellers interact to determine transaction prices and quantities. For more information on this video, and to sign-up for our 10-day Free CFA Course click here - http://www.edupristine.com/10-day-cfa/cfa-economics/ To know more about these trainings, do contact us at -M: +91 80800 05533

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Economics
Topic Weight: 10%
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2. Unemployment & Labor Market Indicator
Total Population
Work-Age Population (>16 years)
Labor Force
Employed
Employed
Unemployment Rate 
Labor Force
Employed
Employment to Population Rate 
Working Age Population
Labor Force
Labor Force Participation Rate 
Working Age Population
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3. Concept Checker
Number of Unemployed 20,000
Number of Employed 50,000
Number of People actively seeking employment 10,000
People (age > 16 years) 120,000
 Then unemployment rate is:
A. 33.34%
B. 40%
C. 16.67%
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4. Answer
A
 A person who is not working is considered to be unemployed person if he is
available to work and
• Has actively searched for work in the last four weeks
• Has been laid off from a job and is waiting to be recalled
• Will start a new job in next 30 days
 Number of unemployed = 20,000
 Labor Force = Number of people either employed or actively seeking employment
= 50,000 +10,000 =60,000
 Unemployment Rate = (Number of Unemployed/Labor Force)
= (20,000/60,000) x100 = 33.34%
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