Question

Why is the underutilisation rate higher than the underemployment rate?​ b) The current unemployment rate is...

Why is the underutilisation rate higher than the underemployment rate?​
b) The current unemployment rate is 5.2% and the number of people in the labour force is 212,000. Use this information to find the following.

(i) How many people are unemployed?​​​​​

(ii) If the working age population is 320,000 what is the labour force participation rate?​​​​​​​​​


(iii) Tara, who lives in Sydney is not a particularly productive worker and she is often unemployed as she gets sacked from her various jobs as she fails to meet her employer’s expectations. Yet for the past 8 months, Tara has not only managed to obtain a job on a part-time basis, but recently was upgraded to a full-time worker despite still being a less than efficient employee. What does Tara’s situation tell you about Australia’s output gap at present, and what does this indicate with respect to the relationship between the actual unemployment rate and the full-employment rate?​​​

Homework Answers

Answer #1

a. The underutilisation rate is a sum of employed plus unemployed people. In this case, even discouraged workers are also considered. Underemployed are those people who are working in jobs less than they are trained at. A student with commerce post graduation degree working as driver is underemployment.

As even discouraged workers are also considered, underutilisation rate higher than the underemployment rate.

b. i. 5.2% of 212,000 are unemployment, it means that 5.2/100*212,000 =11024  are unemployed.

ii.Labor force participation rate = (labor force/ working age population)*100 = 66.25%

iii.It is clear that Australian economy is having inflationary gap and actual rate of unemployment is low than natural rate of unemployment.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
(1) The current unemployment rate is 5.2% and the number of people in the labour force...
(1) The current unemployment rate is 5.2% and the number of people in the labour force is 212,000. Use this information to find the following. i. Tara, who lives in Sydney is not a particularly productive worker and she is often unemployed as she gets sacked from her various jobs as she fails to meet her employer’s expectations. Yet for the past 8 months, Tara has not only managed to obtain a job on a part-time basis, but recently was...
Suppose the unemployment rate is 6 per cent. If the working-age population is 16 million and...
Suppose the unemployment rate is 6 per cent. If the working-age population is 16 million and the total labour force is 10.4 million, how many people are unemployed? Calculate the labour force participation rate. Calculate the employment-to-population rate. Use the theories of job rationing and job search to try to explain why the natural rate of unemployment in the United States is below that in Australia. What can the Australian government do to try to remedy this situation? Might these...
[16] The three major macroeconomic problems are: A) debt, deficits, and taxation. B) unemployment, inflation, and...
[16] The three major macroeconomic problems are: A) debt, deficits, and taxation. B) unemployment, inflation, and taxation. C) unemployment, falling production, and deficits. D) unemployment, falling production, and inflation. [17] The economic term for a resource that is available for production but is not being utilized is: A) idle. B) wasted. C) inefficient. D) unemployed. [18] Being unemployed can: A) cause a person to alter spending patterns and lifestyle. B) affect a person's self-esteem and relationships with others. C) cause...
1. Measuring employment, unemployment, and labor force participation Consider a small economy composed of six people:...
1. Measuring employment, unemployment, and labor force participation Consider a small economy composed of six people: Hubert, Kate, Manuel, Poornima, Valerie, and Shen. 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...
1. Measuring employment, unemployment, and labor force participation Consider a small economy composed of six people:...
1. Measuring employment, unemployment, and labor force participation Consider a small economy composed of six people: Paolo, Sharon, Van, Amy, Deborah, and Carlos. 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...
Which of the following items is a final good? a.   a. mustard in a deli b.  ...
Which of the following items is a final good? a.   a. mustard in a deli b.   b. tin purchased by a can company c.   c. a sweater purchased by someone in a department store d.   d. all of the above are correct Gordon James is a person who sells narcotics on the street. This type of illegal activity: a.   a. would be considered double counting in calculating GDP. b.   b. is estimated and included in GDP figures. c.   c. is...
QUESTION 1 The Bureau of Labor Statistics reported the following information in May 2015: Statistic Quantity...
QUESTION 1 The Bureau of Labor Statistics reported the following information in May 2015: Statistic Quantity (in thousands of people) Working Age Population 250,455 Employment 148,795 Unemployment 8,674 What is the unemployment rate in the US in May 2015? (answer to one decimal place) 15 points    QUESTION 2 The Bureau of Labor Statistics reported the following information in May 2015: Statistic Quantity (in thousnds of people) Working Age Population 250,455 Employment 148,795 Unemployment 8,674 What is the labor force...
1. Measuring employment, unemployment, and labor force participation Consider a small economy composed of six people:...
1. Measuring employment, unemployment, and labor force participation Consider a small economy composed of six people: Nick, Rosa, Tim, Alyssa, Crystal, and Brian. 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...
7. Natural Rate of Unemployment usually means Group of answer choices Zero unemployment, i.e. no frictional,...
7. Natural Rate of Unemployment usually means Group of answer choices Zero unemployment, i.e. no frictional, structural or cyclical unemployment. Some frictional and cyclical unemployment, but no structural unemployment. Some structural and cyclical unemployment, but no frictional unemployment. Some frictional and structural unemployment, but no cyclical unemployment. 8. Which of the following individuals would be considered structurally unemployed? Group of answer choices a fork lift operator who quit her job to look for a similar position with better working conditions...
Consider a small economy composed of six people: Larry, Megan, Raphael, Susan, Becky, and Alex. Each...
Consider a small economy composed of six people: Larry, Megan, Raphael, Susan, Becky, and Alex. 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 Status Larry is...