Question

Suppose the civilian non-institutionalized working-age population is 35.9 million in in a hypothetical economy. Of these, 4.9 million are working part-time and 14.53 million are working full-time. Assume the Bureau of Labor Statistics (BLS) definitions are used for calculating unemployment data. Among those not working, the most recent job search activity for 3.20 million happened less than two weeks ago, while 1.72 million most recently looked for work between two and four weeks ago. An additional 0.86 million most recently looked for work five weeks ago, the remaining 9.81 million who don't have jobs have not looked for work in the past six weeks. A. What is Laborland's total labor force?B. What is Laborland's labor force participation rate?C. How many people are unemployed in Laborland?D. What is Laborland's unemployment rate?

Answer 1

Answer: A.24 350 000, B. 67.83% , C. 4920 000 , D. 20.21%

Step-by-step explanation:

A. Labor force is total number of people employed (full time or part time) plus total number of unemployed people who have been actively looking for employment in the last 4 weeks

Total Labor force = employed + unemployed

Total Labor force = 4 900 000 + 14 530 000 + 3 200 000 + 1 720 000

Total Labor force = 24 350 000

B. Labor Participation Rate = Labor Force/ civilian non-institutionalized working-age population

Labor Participation Rate = 24 350 000/35 900 000 = 0.6782729805

Labor Participation Rate = 67.83%

C. People are classified as Unemployed if they have been actively looking for employment in the last 4 weeks

Number of unemployed people = 3 200 000 + 1 720 000

Number of unemployed people = 4920 000

D. Unemployment rate = Unemployed people/labour force

Unemployment rate = 4920 000/24 350 000 = 0.202053380

Unemployment rate = 20.21%