he BLS survey reported the numbers in the table for a small community of 200 peo
ID: 3119000 • Letter: H
Question
he BLS survey reported the numbers in the table for a small community of 200 people.
Calculate the unemployment rate and the labor force participation rate in this community.
Category
Number
Worked at least 1 hour as paid employees
125
Were not working but had jobs or businesses from which they were temporarily absent
10
Had no employment and didn't want to work
40
Were available for work and had looked for employment last week
5
Were available for work and were waiting to be recalled to their previous job
6
Answer to 1 decimal place.Category
Number
Worked at least 1 hour as paid employees
125
Were not working but had jobs or businesses from which they were temporarily absent
10
Had no employment and didn't want to work
40
Were available for work and had looked for employment last week
5
Were available for work and were waiting to be recalled to their previous job
6
Explanation / Answer
it is to be noted that
(i) a person who performs traditional housework and does not work outside the home for pay will not be regarded as unemployed so 10 people in second row would not form part of unemployed workforce.
(ii) a person who is not working and who has not tried to find a job/ dont want to work will not be included in unemploed category of workforce ,so 40 in third row excluded from unemployed workforce.
(iii) unemployed workforce includes persons without a job who have made efforts in the last week to find a job, so 5 in fourth row will be included in the list of unemployed workforce
(iv) not working and not looking for job/ unwilling to do job ,dont form part of unemployed workforce,so 40 in the third row would not be counted as unemployed
The unemployment rate is calculated as ;
(number of people unemployed/ Available labor force( sum of employed and non employed work force) × 100
Now number of people unemployed =people available for work and had looked for employment last week+peple who were available to work but are waiting for recall to their previous job
=5+6=11
total workforce = number of employed + number of unemployed workforce
=(125+10)+(5+6)=146
The unemployment rate =11/146x100=7.5%
The labor force participation rate is calculated as the labor force divided by the working age population then multiplied by 100.
Also, it must be noted that The labor force participation rate shows the percentage of non-institutionalized working-age people who are actually working or seeking employment.
here, working-age people =125+10+40+5+6=186
and labour force = unemployed + employed
=(5+6)+ (125+10)=146
Thus,Labor force participation rate =146/186X100=78.4%
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