Question

"The Bureau of Labor Statistics reported in 2005 that there were 50.40 million people over age 25 whose highest level of education was some college or an associate degree, 33.86 million of whom were employed and 1.27 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?"

Answer 1

Answer:

natural rate of unemployment 3.6%

labour force participation rate 69.7%

Explanation:

$natural\ rate\ of\ unemployment = \frac{no\ of\ unemployed}{total\ labor\ force} * 100$

from the data given in the question we have

employed = 33.86 million = 33860000

unemployed = 1.27 million = 1270000

therefore we have natural rate of unemployment

$=\frac{1270000}{33860000} * 100 = 3.6%$

labour force participation rate is calculated as

labour force participation rate $= \frac{labour\ force}{adult\ population}$

labor force = employed + unemployed labor = 33.86 +1.27 = 35.13 million

= 35130000 / 50400000 = 69.7%