Question

In the country of Economica, the total labor force consists of 15,000 workers. 750 of these workers are unemployed, and thus the current unemployment rate is 5.0 %. This year, 300 workers will lose their jobs, 255 workers will return to the labor force after an absence, 150 workers will voluntarily leave their jobs, and 750 new workers will enter the labor force. At the same time, 1244 workers will find jobs, and 450 workers will retire or leave the labor force for other reasons. 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:

At the end of the year, the labor force will consist of 15,555 workers

The unemployment rate will be 7.71%

Explanation:

In order to calculate the labor force we would have to make the following calculation:

labor force=labour force - workers will lose their jobs +workers will return to the labor force - workers voluntary leave their jobs + new workers entered

labor force= 15,000 - 300 + 255 - 150 + 750

labor force=15,555

At the end of the year, the labor force will consist of 15,555 workers

In order to calculate the unemployment rate we would have to make the following calculation:

unemployment rate=Unemployed labour force/labor force

Unemployed labour force=new workers entered+workers will lose their jobs+workers voluntary leave their jobs

Unemployed labour force=750 + 300 + 150

Unemployed labour force=1,200

Therefore, unemployment rate=1,200/15,555

unemployment rate= 7.71%

The unemployment rate will be 7.71%