In July 2013, in the Economy of Kai Valley 15000 people were employed and 2000 w
ID: 1225685 • Letter: I
Question
In July 2013, in the Economy of Kai Valley 15000 people were employed and 2000 were unemployed, and 3000 were not in labor force During August 2013, 150 people lost their jobs and did not look for a job 30 people quit their jobs and retired 200 unemployed people are hired, 20 people quit force and 50 college graduate entered into the job market and looking for a job. Calculate the unemployment rate for July 2013 Calculate employment-to-population ration for July 2013 Calculate the labor force participation rate for the end of August 2013 Calculate the unemployment rate for the end of August 2013 Calculate the employment-to-population ratio for the end of August 2013Explanation / Answer
JULY 2013 -
Number of employed = 15,000
Number of unemployed = 2,000
Not in labor force = 3,000
Labor force = employed + unemployed = 15,000 + 2,000 = 17,000
Population = labor force + not in labor force = 17,000 + 3,000 = 20,000
(i)
Calculate Unemployment rate for July 2013 -
Unemployment rate = (Number of unemployed/Labor force) * 100
= (2,000/17,000) * 100
= 11.76%
The Unemployment rate for July 2013 is 11.76%.
(ii)
Calculate employment to population ratio for July 2013 -
Employment to population ratio = (Number of employed/Total population) * 100
= (15,000/20,000) * 100
= 75%
The employment to population ratio is July 2013 is 75%.
AUGUST 2013 -
Number of employed = Number of employed in July - Lost job in August and not looking for job - Quit their job and retired in august + unemployed hired
Number of employed = 15,000 - 150 - 30 + 200 = 15,020
Number of unemployed = Number of unemployed in July - Unemployed people hired in august + new unemployed people entered job market - quit labor force
Number of unemployed = 2,000 - 200 + 50 - 20 = 1,830
Not in labor force = Not in labor force in July + lost job and not looking for job + quit job and retired + quit labor force - college graduate entered labor force
Not in labor force = 3,000 + 150 + 30 + 20 - 50 = 3,150
Population = 20,000
Labor force = Population - Not in labor force = 20,000 - 3,150 = 16,850
(iii)
Calculate Labor-force participation rate in August 2013 -
Labor-force participation rate = (Labor force/Population) * 100
= (16,850/20,000)*100
= 84.25%
The labor-force participation rate in August 2013 is 84.25%.
(iv)
Calculate unemployment rate in August 2013 -
Unemployment rate = (Unemployed/Labor force) * 100 = (1,830/16,850) * 100 = 10.86%
The unemployment rate is August 2013 is 10.86%.
(v)
Calculate employment to population ratio in August 2013 -
Employment to population ratio = (Employed/Total population) * 100
= (15,020/20,000) * 100
= 75.1%
The employment to population ratio in August 2013 is 75.1%.
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