Question

) As of March 2018, the adult population for the U.S. is 257,097, the total number of employed people is 155,178, and the total number of unemployed people is 6,585 (all figures in this question are measured in thousands).

a. What is the unemployment rate for the U.S.?

b. What is the labor force participation rate for the U.S.?

c. Of the 6,585 unemployed people, if 1,000 become discouraged and stop looking for work, what is the new unemployment rate?

d. Between March 2009 and March 2018, the number of people who are working part-time but would prefer full-time work has decreased from 9,415 to 5,019. Does this decrease make the official unemployment figures more or less accurate? Briefly explain your answer.

Answer 1

Ans:

a)

unemployment rate = unemployed / labor force

= 6585 / 161763

= 0.407 or 4.07%

Labor force = employed + unemployed

= 155,178 + 6,585

= 161763

b)  

labor force participation rate = labor force / Adult population

= 161763 /  257,097

= 0.629 or 62.9%

c)

New unemployment rate = 5,585 / 160763

= 0.347 or 3.47%

Labor force = employed + unemployed

= 155,178 + 5,585

= 160763

d) A decrease in the number of people who prefer to work full time does not effect the official unemployment rate.As official unemployment rate includes people who are jobless, actively seeking work, and available for work.