a. There are 950 people employed. If the unemployment rate is 5 percent, how many people are employed? b. One thousand college students graduated. They are all now actively searching for a job and available for work. How has the labor force participation rate changed? Use the equation for labor force participation to show how you know. c. One thousand college students graduated. They are all now actively searching for a job and available for work. How has the unemployment rate changed? Use the equation for the unemployment rate to show how you know.
Added by Taylor B.
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Part a: Calculate the number of employed people given the unemployment rate. ** Show more…
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Exercises 69 to 72 refer to the following setting. In the language of government statistics, you are "in the labor force" if you are available for work and either working or actively seeking work. The unemployment rate is the proportion of the labor force (not of the entire population) who are unemployed. Here are data from the Current Population Survey for the civilian population aged 25 years and over in a recent year. The table entries are counts in thousands of people. Unemployment $(5.3)$ If you know that a randomly chosen person 25 years of age or older is a college graduate, what is the probability that he or she is in the labor force? Show your work.
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(1) Population: 250,000 Unemployed: 20,000 Labor Force Participation Rate: 80% (a) How many people are in the labor force? (b) What is the unemployment rate? (2) Not in the labor force: 125,000 Unemployed: 25,000 Employed: 100,000 What is the unemployment rate?
Natassia F.
Economists use labor-market data to evaluate how well an economy is using its most valuable resource its people. Two closely watched statistics are the unemployment rate and the employment-population ratio (calculated as the percentage of the adult population that is employed). Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing? a. An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs. b. After an unsuccessful search, some of the laid-off workers quit looking for new jobs. c. Numerous students graduate from college but cannot find work. d. Numerous students graduate from college and immediately begin new jobs. e. A stock market boom induces newly enriched 60-year-old workers to take early retirement. f. Advances in healthcare prolong the life of many retirees.
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