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 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 August of 2020, the United States unemployment rate was 8.4%; in September, it was 7.8%. Which of the following is true? There is a 7.7% decrease in the United States unemployment rate from August to September, 2020. There is a 0.077 percentage point decrease in the United States unemployment rate from August to September, 2020. There was a 0.071 percentage point decrease in the United States unemployment rate from August to September, 2020. There was a 0.6% decrease in the United States unemployment rate from August to September, 2020. There was a 7.1% decrease in the United States unemployment rate from August to September, 2020.
Given the numbers in the table, what is the unemployment rate, in percent? (Assume everyone is included in one of the categories.) Round to one decimal place and do not enter the % sign. If your answer is 6.14%, enter 6.1. If your answer is 6.15%, enter 6.2. If appropriate, remember to enter the sign. Category Working Full Time Working Part Time Not Working, Searching for a job Not Working&Not searching for a job; <65 years old Not Working & Not Searching: Full Time Student 15 years old Not Working & Not Searching: Full Time Student 15 years old Not Working, Retired (not searching) 11.1 Number 350 50 50 30 80 20 100
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.
The rate of job separations in the economy is 0.013 (1.3 percent) and rate of job finding is 0.25 (25 percent). a) If the economy has 500 workers in the labor force, calculate the unemployment rate and the number of unemployed in the steady state. b) If the rate of job separations is 1 percent, what happens to the unemployment rate and the number of unemployed in the steady state? c) If labor force suddenly increases by 20 workers who are seeking work (and the rate of job separations remains at 1 percent), what is the immediate change in the unemployment rate? What is the new steady-state unemployment rate? Draw a graph on how unemployment rate evolves in time.
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).
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?
Decide whether each of the following are frictional, structural, or cyclical unemployment: The economy gets worse, so General Motors shuts down a factory for four months, laying off workers. General Motors lays off 5,000 workers and replaces them with robots. The workers start looking for jobs outside the auto industry. About 10 workers per month at a General Motors plant quit their jobs because they want to live in another town. They start searching for work in the new town.
Classify each of the below individuals as 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 not in the adult, civilian, non-institutionalized population An employee on temporary maternity/paternity leave: employedunemployednot in the labor forcenot in the adult, civilian, non-institutionalized population A student who has begun applying for jobs but has not yet found one: employed unemployed not in the labor forcenot 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 forcenot in the adult, civilian, non-institutionalized population
Describe how a rise in the wage rate might cause unemployment.