Question

In the New Orleans metropolitan area in August​ 2005, the labor force was​ 634,512 and​ 35,222 people were unemployed. In September 2005 following Hurricane​ Katrina, the labor force fell by​ 156,518 and the number employed fell by​ 206,024. Calculate the unemployment rate in August 2005 and in September 2005.

Answer 1

Unemployment (August) = 35'222/634'512 ≈ 0.0555 ≈ 5.55%

Employed (August) = 634'512-35'222 = 599'290

Labor force (September) = 634'512-156'518 = 477'994

Employed (September) = 599'290-206'024 = 393'266

Unemployed (September) = 477'994-393'266 = 84'728

Unemployment (September) = 84'728/477'994 ≈ 0.177 ≈ 17.7%

Explanation: