Suppose that New Zombie has adopted the framework used by the US Bureau of Labor Statistics to calculate its labor force statistics. Following information is extracted from a database maintained by the country's ministry of labor: Total population 24,512,311 Military personnel 98,539 People below 16 years of age 4,240,102 People in elderly care centers 1,232,130
Suppose that New Zombie has adopted the framework used by the US Bureau of Labor Statistics to calculate its labor force statistics. Following information is extracted from a database maintained by the country's ministry of labor: Total population 24,512,311 Military personnel 98,539 People below 16 years of age 4,240,102 People in elderly care centers 1,232,130
Suppose that New Zombie has adopted the framework used by the US Bureau of Labor Statistics to calculate its labor force statistics. Following information is extracted from a database maintained by the country's ministry of labor: Total population 24,512,311 Military personnel 98,539 People below 16 years of age 4,240,102 People in elderly care centers 1,232,130
Suppose that New Zombie has adopted the framework used by the US Bureau of Labor Statistics to calculate its labor force statistics. Following information is extracted from a database maintained by the country's ministry of labor:
Total population 24,512,311 Military personnel 98,539 People below 16 years of age 4,240,102 People in elderly care centers 1,232,130 People who didn't look for job in last 4 weeks 831,304 Housewives whose sole activity is homemaking 3,424,204 Volunteers 313,200 Employed people by private sector 8,000,690 Employed people by public sector and state and local government (federal employees are not included) 715,000 Self-employed people 3,423,042 People who are jobless, actively looking for a job, and available for work 2,234,100
Calculate the unemployment rate and the labor force of New Zombie. Show your calculation. (See attachment for the formula and directions for this problem).
Transcribed Image Text:To calculate the unemployment rate, you have to use the formula:
Unemployment rate = # of unemployed ÷ labor force * 100%
Labor Force is calculated using the formula (s) given below
Labor Force = Total Civilian Non-Institutional Population - People Who Did
not Search for Job in Last 4 Weeks - Volunteers - House wives
Total Civilian Non-Institutional Population = Total Population -People Below
the Age of 16 yeas - Military Personal - People in Elderly Care Centers
The BLS is the Bureau of Labor Statistics, an agency within the Department of
Labor. The unemployment rate is calculated by taking a random survey of 60,000
households nationwide. (Note: Households are in the survey for four months, out
for eight, back in for four, and then out for good. Interviewers use the phone or
home visits using laptops.)
The population is divided into three groups:
Group 1 consists of those under age 16 or institutionalized. In this country, if you
are under 16 you are expected to be in school. If you are in an institution such as
a nursing home or prison you obviously cannot present yourself to the labor
market.
Group 2 consists of those "not in labor force. Examples of individuals who are not
in the labor force are full-time college students who are not working, stay at home
parents, and retirees.
Group 3 consists of those age 16 and over who are willing and able to work, and
actively seeking work (individuals who have demonstrated job search activity
within the last four weeks).
So, Group 3 is the labor force. The labor force is simply described as those who
are either employed or unemployed. To be counted as unemployed you must be
a part of the labor force.
The labor force consists of persons 16 years of age or older who are not in
institutions and who are employed, or unemployed but seeking employment. The
unemployment rate is defined as the percentage of the labor force that is not
employed and is found by taking the number of those unemployed and dividing
that number by the labor force. Remember to multiply the result by 100 so you
can express this as a percentage. The BLS rounds the number to one decimal
point.
Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.
Expert Solution
Step 1
The labour force is made up of all those persons who are able, willing, and employed or actively looking for employment.
Labor Force = Employed + Unemployed
Unemployed persons are those who are working yet actively seeking work but are unable to do so.
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