Ellen is downloading labor market data for the most recent month, but her connec

Question

Ellen is downloading labor market data for the most recent month, but her connection is slow. So far this is all she has been able to collect:

Unemployment rate 6%

Participation rate 62.5%

Not in the labor force 63.5 million

Find the working-age population, the labor force, the number of employed workers, and the number of unemployed workers. Instructions: Enter your responses rounded to one decimal place.

Working-age population: million

Labor force: million

Number of employed workers: million

Number of unemployed workers: million

Explanation / Answer

(1) Let working age population be W million. Then,

Labor force (L) (million) = W - Not in labor force = W - 63.5

Participation rate = Labor force / W

0.625 = (W - 63.5) / W

0.625W = W - 63.5

0.375W = 63.5

W = 169.3 million

(2) Labor force (Million) = W - 63.5 = 169.33 - 63.5 = 105.8

(3) Number unemployed (Million) = Labor force x Unemployment rate = 105.8 x 6% = 6.3

(4) Number employed (Million) = Labor force - Number unemployed = 105.8 - 6.3 = 99.5

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