0.3) Measuring Employment-25 points The Bureau of Labor Shenanigans announces, o
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Question
0.3) Measuring Employment-25 points The Bureau of Labor Shenanigans announces, of all adult Narnites: 225,000,000 were employed, 17,000,000 were unemployed, and 159,000,000 were not in the labor force. Use the above information to calculate (Show all work in context): a) The adult population b) The labor force c) The labor-force participation rate d) The unemployment rate e) True, false, uncertain, or not enough information? The labor force participation rate decreases while the unemployment rate increases if 850,000 discouraged-job seekers stopped looking for work? Explain with numerical evidence. (Hint: Critical Thinking)Explanation / Answer
The adult populattion = Employed+Unemployed+People not in Labor force
=225000000+17000000+159000000 = 401,000,000
Labor Force = Employed + Unemployed
=225000000+17000000 = 242,000,000
Labor Force Participation Rate = Labor Force/Working Age Population = 242000000/401000000 = 0.6035 or 60.35%
Unemployment Rate = Unemployed/Labor FOrce = 17000000/242000000 = 0.070248 or 7.025%
The discouraged workers are not included in the labor force, thus they will not affect the unemployment rate. Only those persons who are actively looking for work are part of the labor force and taken in calculation for unemployment rate. If the persons gets discouraged and stop looking for work the labor force will go down and so will the participation rate. Also the unemployment rate will go down as som 85000 are now not part of labor force.
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