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Amy is working part-time. Tavaris is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category?

a) Neither Amy nor Tavaris.
b) Only Tavaris.
c) Only Amy.
d) Both Amy and Tavaris.

1 Answer

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Final answer:

Amy is considered employed by the BLS because she is working part-time, while Tavaris is considered unemployed due to being on temporary layoff. The answer is c) Only Amy.

Step-by-step explanation:

The Bureau of Labor Statistics (BLS) considers individuals as employed if they have done any work at all for pay or profit during the survey reference week. This includes part-time and temporary work. Therefore, Amy, who is working part-time, would be counted as employed.

On the other hand, individuals on temporary layoff are categorized as unemployed because they have been temporarily separated from a job with the expectation to return. Hence, Tavaris would be categorized as unemployed. The response to the student's question is c) Only Amy.

To further clarify employment status, here are some assessments based on BLS criteria:

  • A husband who stays home with children and is not looking for work would not be counted in the labor force.
  • A manufacturing worker whose factory just closed down and is actively looking for work would be counted as unemployed.
  • A college student doing an unpaid summer internship would not be counted in the labor force if they are not actively looking for paid work.
  • A retiree not seeking employment is not in the labor force.

Hidden unemployment includes individuals in part-time or temporary jobs who are seeking full-time employment, those who are underemployed, and discouraged workers who stopped looking for work. These individuals are often not adequately represented in employment statistics.

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