1. Measuring employment, unemployment, and labor force participation Consider a
ID: 1167098 • Letter: 1
Question
1. Measuring employment, unemployment, and labor force participation Consider a small economy composed of six people: Kenji, Lucia, Paolo, Sharon, Amy, and Van. Each person's employment status is described in the following table Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person's status as employed, unemployed, "not in the labor force" (if not in the civilian labor force but still part of the adult population), or "not in the adult population" if not in the civilian adult population. Person Kenji is a 49-year-old autoworker who was laid off from his job 6 months ago. He is frustrated with his inability to find a new full-time position. Last week, he took a part-time job but was given only 3 hours of work. Lucia is a 34-year-old professional basketball player Status Employed Not in the adult population Not in the labor force Unemployed She finished her last season as a player 3 weeks ago and is currently interviewing for a coaching position. Paolo is a 39-year-old graphic designer who is taking 2 years off from work to care for his small daughter. Amy is a 29-year-old who lost her job as an associate producer for a radio station. After spending a few weeks out of work and interviewing for several other positions, she gave up on her job search and decided to go back to grad school. She made that decision a few months ago. Van is a famous novelist. He is spending the summer at his lake house in upstate New York, doing a little writing each day but mostly spending his time gardening and reading. Sharon is a 11-year-old student at Southside Middle School. She babysits her younger sister and does other chores, so her parents give her an allowance of $30 per week.Explanation / Answer
-Kenji is employed
Part time workers are considered employed.
- Lucia is unemployed
She is an adult and actively looking for a job.
- Paolo is not in the labor force
He has given up the job to take care of his daughter, hence not looking for a job.
- Amy is not in the labor force
She has given up looking for the job.
- Van is employed
He is employed as a novelist
- Sharon is not in adult population.
Labor force participation rate= 100* number in labor force / adult population
Number in labor force= unemployed + emplyed
= 1+2= 3
Number in adult population= 5
Labor force participation= 100*3/5= 60%
60% is correct.
Unemployment rate= 100*number of unemployed workers / labor force
= 100*1/3= 33.33%
33.33% is correct.
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