Question

If the number of employed is 220,000, the labor force is 250,000, the number of discouraged workers is 15,000, and the number of underemployed is 15,000. Underemployed workers are defined as workers who work 32 hours per week but would like to work 40 hours per week. Calculate the unemployment rate when we include all of this additional information about our labor force and adjust the unemployment rate to account for this.

Answer 1

Answer:

unemployment rate = (unemployed ÷ labour force) ×100

It will be NIL

Explanation:

Underemployed workers are those who are not working full time in their full capacity therefore they will not be counted as unemployed.

Discouraged workers are those who are not actively looking for job, they will neither be part of the labour force nor will be counted as unemployed.

In this case the unemployment rate will be nil as the discouraged workforce is 15000 this will not be part of the labour force reducing it to be 235,000.

Underemployed workers will not be part of labour force neither are considered unemployed they are not working at their full capacity might be doing part time job or working from home.

This will reduce the labour force from 235,000 to 220,000. As number of employment is 220,000. this means unemployment rate will be nil.