Extra Credit 1. The table below relates to the labor force classification of a p
ID: 2428974 • Letter: E
Question
Extra Credit 1. The table below relates to the labor force classification of a particular country. Use the information to answer the questions that follows ull-time employed art-time employed million 26 million 14 million Unemployed Not in the Labor Force 30 million Calculate the following a. Labor Force (2 points) (2 points) (4 points) (4 points) b. Adult Population c. Unemployment rate d. Labor-Force participation rate e. If some of those actively looking for a job apparently give-up and become "discourage workers'. All else being the same, how would that affect unemployment rate and labor-force participation rate? Will they increase, decrease or stay the same? (5 points) f. If some of the part-time workers get a fulltime position, all else equal, how would that affect unemployment rate? Will it increase, decrease or stay the same? (3 points) g. Suppose there were a fraction of this population who are college students that only goes to school full-time but recently graduated and are all recently hired. All else being the same, how would that affect unemployment rate and labor-force participation rate? Will they increase, decrease or stay the same? (Hint: Assume all these people aged at least 16 years old even by the time they were going to college) (5 points)Explanation / Answer
e. When discouraged workers are considered a part of the calculation ,then both the unemployment rate and labor force participation rate will increase. This is because discouraged workers are considered a part of the labor force and thus this will increases both unemployment and labor force participation rate.
f. Unemployment rate will remain same as part time workers are also considered employed when calculating unemployment rate.
g. This will increase the number of employed in the country. Thus, labor force participation rate which is the sum of employed and unemplyed will increase. An increase in the labor force will reduce the level of unemployment rate in the economy.
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