Unemployment Rate Rises to 14.2% in Q4 2016-NBS

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June 5, 2017/NBS

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Brief Methodology
In computing the unemployment rate, the total population is divided into labour force (currently active) and nonlabour force (not currently active).  

The labour force population covers all persons aged 15 to 64 years who are willing and able to work regardless of whether they have a job or not. The definition of unemployment therefore covers persons (aged 15–64) who during the reference period were currently available for work, actively seeking for work but were without work.  

A person is regarded as employed if he/she is engaged in the production of goods and services, thereby contributing to the Gross Domestic Product (GDP) in a legitimate manner, which is a component of the national accounts and receives any form or amount of compensation for that activity.  

The category of persons considered not in the labour force include those not between 1564(economic active population) as well as those within the economically active population i.e 1564, who are unable to work, not actively seeking for work or choose not to work and/or are not available for work, which are the economically inactive.  

Examples of these are voluntary full-time housewives, underage children 14 and below, adults above 65, full time students, those in active military service, physically challenged and incapacitated persons whose incapacitation prevents them from working. Growth in the labour force therefore fluctuates and depends on the decisions by constituents of the economically activate population on whether to work or not which varies across different cultures, religion, as well as various academic, economic and family considerations. 

For example, a housewife might decide to take up employment to supplement the family income due to changes in the husband’s salary or due to added family needs, or a person might decide to take some time off work to either study for Master’s program or to recover from ill health. Any of these can cause fluctuations in the economically active and labour force population at any given time.

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