Neco 2025 Economics Question 40

In a country the labour force is 8 million, of which 1.2 million are unemployed. The unemployed consist of 0.3 million frictionally unemployed and 0.9 million structurally unemployed. A government training programme moves 200 000 people from unemployment into employment and reduces structural unemployment by 0.5 % of the total labour force. At the same time, 100 000 previously employed workers become discouraged and leave the labour force.\n\n(i) Calculate the new unemployment rate (as a percentage, to one decimal place).\n(ii) Determine the new labour‑force participation rate, assuming the working‑age population is 10 million (percentage, to one decimal place).\n(iii) Compute the new natural rate of unemployment (structural + frictional) as a percentage of the new labour force (to one decimal place).