Question

Sally is looking for a job but does not have one yet. She's 16. What is Sally's current situation?

1) She is unemployed
2) She is a student
3) She is self-employed
4) She is retired

Answer 1

Sally is 16 and actively looking for a job but has not yet found one, so her current situation can be classified as unemployed. She is neither self-employed, a student in the context of labor status, nor retired.

Step-by-step explanation:

Sally, who is 16 and actively looking for a job but has not found one yet, would be classified as unemployed. According to the U.S. unemployment rate criteria, to be considered unemployed, a person must be without a job, available to work, and actively looking for work in the previous four weeks. Sally fits this definition as she does not have a job but is actively job searching, which indicates readiness and willingness to work.

It is important to differentiate between different labor market statuses: someone like Sally, who is out of work and seeking employment, is counted as unemployed. This is distinct from someone who is out of paid work and not actively looking for a job, who would be considered 'out of the labor force'. Hence, Sally's current situation falls under the term 'unemployed'.