Employment/Tutorials
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Labour market trends
Long-run trends can be analysed using the following tautological relationships
The trend growth rate of unemployment, ΔU can be expressed as:
- ΔU = ΔL - ΔE
where
- ΔL is the growth rate of the labour force
- (which can be expressed as
- ΔL = ΔA + ΔR
- where
- ΔA is the growth rate of the population of working age and,
- ΔR is the growth rate of the participation rate.)
- (which can be expressed as
and
- ΔE is the growth rate of employment
- (which can be expressed as
- ΔE = ΔO - ΔP
- where
- ΔO is the growth rate of output
- ΔP is the growth rate of labour productivity)
- (which can be expressed as