Answered: Labour force: 140,200 Individuals…

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Economic Fluctuations, Unemployment, And Inflation

Section: Chapter Questions

Problem 7CQ

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Question

Labour force: 140,200

Individuals under 16 years: 12,400

Employment: 132,700

Imprisonment: 980

Working age population: 210,900

Armed forces: 18,600

Use the information given to calculate the following:

Unemployment rate, Labour force participation rate, Employment to population ratio, Institutionalized population ratio, Not in the labour force, Working age population ratio

Expert Solution

Step 1

Given:

Labour force: 140,200

Individuals under 16 years: 12,400

Employment: 132,700

Working-age population: 210,900

Armed forces: 18,600

Imprisonment: 980

To Find

Unemployment rate
Labour force participation rate
Employment to population ratio
Institutionalized population ratio
Not in the labor force
Working-age population ratio

Step 2

Part-A) Unemployment Rate:

$U n e m p l o y m e n t = L a b o r F o r c e - E m p l o y m e n t U n e m p l o y m e n t = 140, 200 - 132, 700 U n e m p l o y m e n t = 7, 500$

Thus, the unemployment rate will be:

$U n e m p l o y m e n t R a t e = \frac{T o t a l N u m b e r o f U n e m p l o y e d P e r s o n}{L a b o r F o r c e} \times 100 U n e m p l o y m e n t R a t e = \frac{7, 500}{140, 200} \times 100 U n e m p l o y m e n t R a t e = 0.053 \times 100 U n e m p l o y m e n t R a t e = 5.3 %$

Part-B) Labor Force Participation Rate:

$L a b o r F o r c e P a r t i c i p a t i o n R a t e = \frac{L a b o r F o r c e}{T o t a l W o r k i n g P o p u l a t i o n} \times 100 L a b o r F o r c e P a r t i c i p a t i o n R a t e = \frac{140, 200}{210, 900} \times 100 L a b o r F o r c e P a r t i c i p a t i o n R a t e = 0.664 \times 100 L a b o r F o r c e P a r t i c i p a t i o n R a t e = 66.4 %$

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