Question

In the country of​ Economica, the total labor force consists of 10,000 workers. 600 of these workers are​ unemployed, and thus the current unemployment rate is 6.0​%. This​ year, 200 workers will lose their​ jobs, 170 workers will return to the labor force after an​ absence, 100 workers will voluntarily leave their​ jobs, and 500 new workers will enter the labor force. At the same time, 933 workers will find jobs, and 300 workers will retire or leave the labor force for other reasons.
1) Thus, at the end of the year, the labor force will consist of -------- workers, and the unemployment rate will be --------% (round your responses to one decimal place.)

Answer 1

Answer:

The labor force will consist of 10,370 workers, and the unemployment rate will be 6.1 %

Explanation:

The labor force includes employed workers and unemployed workers who are looking for a job.

Labor force at the beginning of the year is 10,000.

Labor force at the end of the year

= Total labor force at the beginning of the year + Workers returned to the labor force + New workers added to the labor force - Workers who retired or left the labor force

= 10,000 + 170 + 500 - 300

= 10,370 workers

Number of unemployed at the end of the year

= Number of unemployed at the beginning of the year + Workers who lost their job + New entrants into the labor force + Workers who had returned to the labor force + Voluntary unemployment - Wokers who got employed

= 600 + 200 + 500 + 170 + 100 - 933

= 637 workers

Unemployment rate

=$\frac {Number\ of\ unemployed}{Labor\ force}$

= $\frac{637}{10,370}$

= 0.0614 or 6.14%