PART 2: Uneployment 6. In J anuary 2011, the government of Keynesland took a cen

Question

PART 2: Uneployment 6. In J anuary 2011, the government of Keynesland took a census count of its population. At this time, it documented 100,000 working-age adults, of whom 50,000 are employed and 40,000 do not participate in the work force. i. What is Keynesland's unemployment rate? Unemployment rate i. Suppose the January 2012 census discovers the following flows between January 2011 and January 2012. Employed 2,000 5,000 8,000 1,000 2,000 Unemployed Not in labor force 7,000 Using this information, what is the January 2012 unemployment rate? Unemployment rate the following data for a country:

Explanation / Answer

Ans:

6)

i) Labor force = 100,000 - 40000

= 60,000

Unemployed = labor force - employed

   = 60,000 - 50,000

   = 10,000

Unemployment rate in Keyneslands = Unemployed / Labor force

= 10,000 / 60,000

= 16.67%

ii)

change in labor force = (7000 + 2000) - (2000 + 1000)

= 9000 - 3000

= 6000

Change in unemployed = (5000 + 7000) - (8000 + 2000)

= 12000 - 10000

= 2000

Unemployment rate = change in unemployed / change in labor force

= 2000 / 6000

= 0.33 or 33%

7)

Size of labor force = 500 million - 120 million - 150 million

   = 230 million

Unemployed = 23 million

Unemployment rate = 23 million / 230 million

= 0.1 or 10%

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