Employment/Tutorials

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.)

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)