Inadequacy of the traditional measure of the unemployment rate is now well-recognised internationally. I pointed out that a problem in the falling unemployment rate of recent times is that it is, in fact, a reflection of falling labour participation rate. Today, I introduce some additional unemployment metrics to overcome at least a part of the limitation of the traditional unemployment rate.
The unemployment rate is the ratio of unemployed people to the total labour force. During September-December 2016, the labour force was 46 per cent of the population and the unemployed about 6.8 per cent of the labour force. So
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