Why are non-participants left out of the denominator?

The rate compares people who want work but have none with the labour force, and non-participants are not in it.

Why not average two unemployment rates?

The two labour forces differ in size, so add the unemployed and divide by the combined labour force.

S4 Economics Unemployment, Paper 4: vacancies, long-term unemployment and pooled rates

2026-11-02

Unemployment counts only people inside the labour force, and vacancy ratios, long-term shares and pooled rates all need the same base.

Focus　Write the labour force and the unemployed first, then apply each percentage in turn before comparing groups.

01　Paper details (check answers afterwards)

Item	Detail
Questions	10
Suggested time	25
Difficulty mix	Foundation 4 · Intermediate 3 · Challenge 2 · Error redo 1
Chapter	Chapter: S4 Economics: Unemployment
Level	S4

02　Questions (10 items)

FoundationThe labour force is 6.2 million with 310 000 unemployed. Find the unemployment rate.
FoundationEmployment is 4.56 million and unemployment is 240 000. Find the unemployment rate.
FoundationThe working-age population is 8.0 million and the labour force is 5.2 million. Find the participation rate.
FoundationUnemployment is 120 000 and the unemployment rate is 4%. Find the labour force and the number employed.
IntermediateThe labour force is 2.5 million and unemployment is 8%. If 100 000 people leave the labour force, 60 000 of them unemployed, find the new rate.
IntermediateThe youth labour force is 400 000 and the youth unemployment rate is 15%. Find the number of unemployed young people.
IntermediateThere are 30 000 vacancies and 240 000 unemployed. Find the number of unemployed per vacancy.
ChallengeThe labour force is 8.0 million and unemployment rises from 5% to 6%. If each percentage point costs 2% of output, find the extra unemployed and the output loss.
ChallengeThe labour force is 2.0 million and unemployment is 9%, with 30% unemployed for over a year. Find the number long-term unemployed.
Error redoEmployment is 3.8 million, unemployment is 200 000 and 1.0 million are outside the labour force. A student divides 20 by 500 and answers 4%. Find the correct rate.

03　Answers and one-line notes

#	Answer	One-line note
1	5%	31 over 620 is 5%.
2	5%	The labour force is 4.8 million, and 24 over 480 is 5%.
3	65%	520 over 800 is 65%.
4	A labour force of 3.0 million and 2.88 million employed	12 over 4% is 3.0 million, and subtracting 120 000 leaves 2.88 million employed.
5	About 5.83%	Unemployment falls to 140 000 and the labour force to 2.4 million, so 14 over 240 is 5.83%.
6	60 000	40 times 15% is 6, that is 60 000 young people.
7	Eight	3 over 24 is 0.125, so eight unemployed people compete for each vacancy.
8	80 000 people and a 2% output loss	One percentage point of 8.0 million is 80 000 people, and one point times 2% is a 2% output loss.
9	54 000	9% of 2.0 million is 180 000 unemployed, and 30% of that is 54 000.
10	5%	The denominator is the 4.0 million labour force only, so 20 over 400 is 5% and non-participants are excluded.

04　What to do after marking

After marking, redo only the wrong items and write down which step went wrong (formula, unit, or misread number).
Repeat the same item two days later; move to the next paper only when both attempts are correct.
Parents only need the answer and note columns; there is no need to explain every item.

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