Question

In​ March, 2006 the labor department of the country of Jobland determined that the size of the labor force was 102 million out of which 94 million were employed. In May​ 2006, the labor department determined that 1.0 million people became​ "discouraged workers" in April. Assuming that no new jobs were created between March and​ April, calculate the unemployment rate for March and April. Jobland unemployment rate in March​ = nothing percent. ​(Enter your response rounded to one decimal​ place.) Jobland unemployment rate in April​ = nothing percent. ​(Enter your response rounded to one decimal​ place.)

Answer 1

Answer:

Unemployment Rate for March and April:

March unemployment rate = Unemployed/Labor Force x 100 = (102-94)/102 x 100 = 8/102 x 100 = 7.8%

April unemployment rate = (102 - 94)/102 x 100 = 8/102 x 100 = 7.8%

Explanation:

a) The unemployed equals the Labor Force minus the employed.

b) In April, the unemployed did not increase from 8 million to 9 million because of the discouraged workers.  It remained the same figure as in March.

Discouraged workers are those who are unemployed but have stopped looking for employment after a long time of unemployment, but would have preferred to be working.  Since they stopped actively job-hunting, they are regarded as discouraged workers.  They still want to work, but are unable to find work and as a result, decide to stop looking.