Question 1. The table below summarizes recent employment data in the U.S. Source
ID: 1138810 • Letter: Q
Question
Question 1.
The table below summarizes recent employment data in the U.S.
Source: FRED database, Federal Reserve Bank of St. Louis (USA). Available online: https://research.stlouisfed.org/fred2/
Table 1. Employment status in U.S. (July, August 2013 and 2014)
Based on this data, report in a table for each year (2013, 2014) the employment status in July and August in terms of: i) Participation rate, ii) Employment-Population ratio and iii) Unemployment rate.
What has happened to the i) unemployment rate and ii) participation rate in July and August of 2014?
What trend do the i) Employment-Population ratio and the ii) Unemployment rate show over the last 2-years (year-over-year)? Do the two trends provide a similar message? Why or why not? In view of your results, is the current labor market showing signs of improvement relative to last year? Explain.
Category Number (thousands of persons) Jul-13 Aug-13 Jul-14 Aug-14 Employed workers 144,285 144,170 146,352 146,368 Unemployed Workers 11,514 11,316 9,671 9,591 Labor Force 155,798 155,486 156,023 155,959 Not in Labor Force 88,560 89,988 90,451 91,794Explanation / Answer
Labour force participation rate = participants in labour force/ total population*100
July2013 =155,798/ 155798+88560*100= 155,798/244,358*100= 63.75%
Aug 2013 = 155486/155486+89988*100 =155486/245474*100= 63.34%
July 2014 = 156023 /156023+90451*100 =156023/249474*100=62.54%
Aug 2014 = 155959/155959+91794*100=155959/247,753*100= 62.94%
Employment population ratio= employment / population*100 =62.95%
July2013 = 144,285/244358= 0.59
Aug 2013 =144,170/245474 =0.58
July 2014 =146,352/246474= 0.59
Aug 2014 =146,368/247753= 0.59
Unemployment rate= Unemployed/ people in labour force*100
July 2013 = 11514/155798*100 = 7.39%
Aug 2013 = 11316/155486*100 =7.27%
July 2014 = 9671/156023*100 = 6.19%
Aug2014= 9591/155959*100 = 6.14%
From the calculation we could interpret that the unemloyment rate is decreasing in July and Aug 2014
Labour participation rate is also decreasing.
no both the trends are not providing similar message
employment population rate showing employment over whole polpulation of people while unemployment rate showing unemployment over labour force. Both are decreasing
Yes we could say that current labour market showing sign of improvement because unemloyment is decreasing.
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