Economics. Please answer in detail. Thank you! There were 65 people in the house

Question

Economics. Please answer in detail. Thank you!

There were 65 people in the houses I visited: 10 of them children under 15 and 10 retired; 25 people had full-time jobs, and 5 had part-time jobs. There were 5 full-time homemakers, 5 full-time students aged 15 and over, and 2 people who were ill and cannot work. The remaining people did not have jobs but all said they would like one. One of these people had not looked actively for work for 3 months, however. Using the above information, find the labour force, the working age population, the unemployment rate and the labour- force participation rate If one of the unemployed persons stops looking for work because he found a new job, what is the new unemployment rate? What is the labour force participation rate?

Explanation / Answer

a) only individuals age 16 and older are counted in the potential labor force, and they are only counted in the labor force if they are actively working or have looked for work in the past four weeks.

Remaining people = 65-10-10-25-5-5-5-2= 3

Labor force = 25 full time + 5 part time+ 3 remaining -1 not looking for work = 32

Labor force = 32

Unemployed = 3-1= 2

unemployment rate = (# of unemployed / labor force) x 100% = 2/32*100= 6.25%

working-age population (ages 15 to 64 in most OECD countries)= (65-10-10) = 45

Labor Force Participation Rate =Labor Force/Working Age non-institutionalized Population = 32/45= 0.71

b)# of unemployed = 3-2= 1

unemployment rate = (# of unemployed / labor force) x 100% = 1/32*100= 3.125%

c)# of unemployed =number of ppl looking for job= 1

unemployment rate = (# of unemployed / labor force) x 100% = 1/32*100= 3.125%

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