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4. A survey of the working age population in a country shows that 2,000 persons are full-time students;

4,500 chosen to stay home and take care of the children; 20,000 persons worked full-time, while 4,000
30
worked part-time. 1,700 persons did not work the last week but would like to work. Of these 1,200
actively sought for work the last 4 weeks. The remaining 500 persons would like to work, but after
months of trying, they have given up looking for work. Calculate the following: (4 points)
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1 Answer

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Answer:

a) Total working age population: 32,200 persons

b) Labor force participation rate: approximately 78.26%

c) Unemployment rate: approximately 4.76%

d) Discouraged worker rate: approximately 1.98%

Step-by-step explanation:

a) Total working age population:

To find the total working age population, we need to sum up all the categories mentioned above:

Total working age population = Full-time students + Individuals taking care of children + Full-time workers + Part-time workers + Individuals who want to work but are not currently working

Total working age population = 2,000 + 4,500 + 20,000 + 4,000 + 1,700 = 32,200 persons

b) Labor force participation rate:

The labor force participation rate is the percentage of the working age population that is either employed or actively seeking employment.

Labor force participation rate = (Full-time workers + Part-time workers + Individuals actively seeking work) / Total working age population * 100

Labor force participation rate = (20,000 + 4,000 + 1,200) / 32,200 * 100 = (25,200 / 32,200) * 100 ≈ 78.26%

c) Unemployment rate:

The unemployment rate is the percentage of individuals in the labor force who are actively seeking employment but are currently unemployed.

Unemployment rate = (Individuals actively seeking work / Labor force) * 100

Unemployment rate = (1,200 / 25,200) * 100 ≈ 4.76%

d) Discouraged worker rate:

The discouraged worker rate is the percentage of individuals in the labor force who have given up looking for work.

Discouraged worker rate = (Individuals who have given up looking for work / Labor force) * 100

Discouraged worker rate = (500 / 25,200) * 100 ≈ 1.98%

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