Suppose the working-age population of a fictional economy falls into the following categories: 60 have full-time employment; 20 have part-time employment; 20 do not have employment, but are actively looking for employment; and 10 people are not employed and are not actively looking for employment. {Show all the steps including the relevant formulae & proper units}

(1) What is the size of Labor force

(2) What is the Unemployment rate

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Business

Ashlyn Cowan

12 November, 20:01

Suppose the working-age population of a fictional economy falls into the following categories: 60 have full-time employment; 20 have part-time employment; 20 do not have employment, but are actively looking for employment; and 10 people are not employed and are not actively looking for employment. {Show all the steps including the relevant formulae & proper units}

(1) What is the size of Labor force

(2) What is the Unemployment rate

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Answers (1)

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Koen Herring · Answer 1

1) What is the size of Labor force

?

60 people are full time employed + 20 people who are part-time employed + 20 people who are unemployed = 100 people

2) What is the Unemployment rate?

20 people who are unemployed / 100 people = 0.2 or 20%

the unemployment rate includes only those people who do not have a job but are willing and able to work, and are currently looking for one.