Question

Suppose the civilian noninstitutionalized 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 2.90 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, and the remaining 10.99 million who do not have jobs have not looked for work in the past six weeks. Round your answers to two decimal places. What is Laborland's total labor force?What is Laborland's labor force participation rate?How many people are unemployed in Laborland?What is Laborland's unemployment rate?

Answer 1

Answer:

Total no. of people employed:

= No. of people working part-time + No. of people working full time

= 4.9 million + 14.53 million

= 19.43 million

Total no. of people unemployed:

= People in the working age population who are not working and have looked for work in the past four weeks

= 2.90 + 1.72 million

= 4.62 million

Labor force = Total no. of people employed + Total no. of people unemployed

= 19.43 million + 4.62 million

= 24.05 million

Labor force participation rate:

$=\frac{Labor\ force}{Total\ non-institutionalized\ working\ age\ population}$

$=\frac{24.05}{35.9}$

= 0.6699

= 66.99%

Unemployment rate:

$=\frac{No. of people unemployed}{Total labor force}$

$=\frac{4.62}{24.05}$

      = 0.1920

      = 19.20%