Question

This is an essay on Economics

The u.s economy has population of 330 million people and economy _wide unemployment rate of 4.. described and explain how the official unemployment is calculated. Provide a formula in your answer. Described what this 4.1 means. Not more than five lines answer

Answer 1

Every month Bureau of Labor Statistics conducts a survey called Current Population survey to measure the unemployment rate. In this survey 60000 households are asked a series of questions regarding their job status and labor force activities. The responses are then adjusted after taking into account various factors such as age, sex, race. People who have jobs are counted as employed and people who do not have jobs but are looking for jobs are counted as unemployed. Their sum total is called the labor force. People who do not have a job and are not looking for one are not part of the labor force.

The unemployment rate is the number of unemployed as a percentage the labor force. An unemployment rate of 4.1% implies that 4.1% of the labor force do not have a job and are actively looking for a job.