Question

The information in the table below applies to a hypothetical economy. Answer the following questions writing out millions of workers and percentage rates each to one decimal place e.g. 1.0 million and 1.0%.

Unemployed members of the labour force	2.3 million
Total population 15 year of age and over	59.2 million
Participation rate	64%
Workers with full-time jobs	21.8 million
Part-time workers who do not wish to have full-time jobs	4.1 million
Part-time workers who wish to have full-time jobs	3.3 million
Total population less than 15 years of age	14.6 million

a. The size of the labour force is  million.

b. The size of the labour force population is  million.

c. The official unemployment rate is  %.

d. An estimate of the unemployment rate that includes underemployment is  %.

Answer 1

a)

Number of employed = Part time workers who wish to have full time jobs + Part time workers who do not wish to have full time jobs + Workers with full time jobs = 3.3 + 4.1 + 21.8 = 29.2 million

Number of unemployed = 2.3 million

Size of labour force = number of employed + number of unemployed = 29.2 + 2.3 million = 31.5 million

b) Size of labour force population = Total population 15 year of age and over = 59.2 million

c) Unemployment rate = (Number of unemployed / Labor force in )*100 = (2.3 / 31.5) * 100 = 7.3 %

d) Underemployed workers are the part-time workers who wish to have full-time jobs.

So, number of unemployed now also includes the workers who wish to have full-time jobs

Number of Unemployed = Number of Unemployed + Part time workers who wish to have full time jobs = 2.3 + 3.3 = 5.6 million

unemployment rate that includes underemployment = (5.6 / 31.5) *100 = 17.8 %