Economists use labor-market data to evaluate how well an economy is using its most valuable resource-its people. Two closely watched statistics are the unemployment rate and the employment-population ratio (calculated as the percentage of the adult population that is employed). Indicate what happens to the unemployment rate and the employment-population ratio in each of the following scenarios. Scenario A financial firm goes bankrupt and lays off its workers, who immediately start working in other financial firms. After an unsuccessful search, some laid-off workers decide to go back to school as full-time students. Numerous students graduate from college but cannot find work. A stock market crash leads to large-scale lay-offs of workers aged 55 and above, who decide to retire instead of looking for new jobs. Unemployment Rate Stays the same Stays the same Increases Increases Effect On... Employment-Population Ratio Stays the same Stays the same Decreases Decreases

Economists use labor-market data to evaluate how well an economy is using its most valuable resource-its people. Two closely watched statistics are the unemployment rate and the employment-population ratio (calculated as the percentage of the adult population that is employed). Indicate what happens to the unemployment rate and the employment-population ratio in each of the following scenarios. Scenario A financial firm goes bankrupt and lays off its workers, who immediately start working in other financial firms. After an unsuccessful search, some laid-off workers decide to go back to school as full-time students. Numerous students graduate from college but cannot find work. A stock market crash leads to large-scale lay-offs of workers aged 55 and above, who decide to retire instead of looking for new jobs. Unemployment Rate Stays the same Stays the same Increases Increases Effect On... Employment-Population Ratio Stays the same Stays the same Decreases Decreases

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Unemployment associated with individuals voluntarily leaving their job can be labelled: (a) seasonal unemployment; (b) discouraged worker syndrome; (c) frictional unemployment; (d) structural unemployment.
Unemployment is a very important topic in macroeconomics. A high unemployment rate means that a lot of individuals willing to work cannot find a job. This is bad for the economy, as some resources (i.e., labour) remain idle. Comment on the effects that being unemployed have on an individual.
In which of the following cases will we observe unemployment? the quantity of labor demanded is greater than the quantity of labor supplied at the going wage rate. the wage is below the level that balances supply and demand for labor. there is a shortage of workers. the quantity of labor demanded is less than the quantity of labor supplied at the going wage rate.
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Suppose that there is a recession similar to the one in 2008. What would happen to the equilibrium wage if the unemployment rate increased to 10%? Show this first on the labor discipline graph (nominal wage), then on the wage-setting curve graph (real wage).
Classify the following:A student who has begun applying for jobs but has not yet found one: employed, unemployed, not in the labor force, or not in the adult, civilian, non-institutionalized population. An actor who works part-time at a restaurant but is looking for full-time work: employed, unemployed, not in the labor force, or not in the adult, civilian, non-institutionalized population. A retiree who will work if a job becomes available but is not actively applying: employed, unemployed, not in the labor force, or not in the adult, civilian, non-institutionalized population. An employee on temporary maternity/paternity leave: employed, unemployed, not in the labor force, or not in the adult, civilian, non-institutionalized population.
Consider the following statistics from a Labor Market and then answer the questions which follow; • 8,570 workers have been laid-off from employment and are waiting to be recalled. • 4,523 have lost morale and quit actively seeking employment. • 3,498 people are below 16years. • 53,862 people are currently in education and not searching for employment. • 9,454 workers have been retired from employment. • 57,367 workers are employed but 65% are still searching for better employment. • 378 people have switched between jobs. • 157 quit their jobs because of low salaries and are seeking better paying jobs. • 12,321 new graduates are actively seeking formal employment. • 1,563 are in jail. a) How many people are discouraged workers, unemployed and in the Labor Force? b) Calculate the unemployment rate? c) How many people are not in the Labor Force and how many people are part of the Adult Working Population?
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