2. 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 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 jobin 4 weeks 831,304 House wives whose sole activity is home - making 3, 424, 204 Volunteers 313,200 Self employed people 3,423,042 People who are jobless, actively looking for a job, and 2, 234 available for work Calculate the unemployment rate and the labor force of New Zombie Show your calculation (See next page for the formula and directions for this problem ) **Labor Force Statistics in New Zombie**Suppose that New Zombie has adopted the framework used by the US Bureau of Labor Statistics to calculate its labor force statistics. The 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 a Job in Last 4 Weeks:** 831,304- **Housewives Whose Sole Activity is Home-Making:** 3,424,204- **Volunteers:** 313,200- **Self-Employed People:** 3,423,042- **People Who are Jobless, Actively Looking for a Job, and Available for Work:** 2,234,100**Tasks:**Calculate the unemployment rate and the labor force of New Zombie. Show your calculation.*(See next page for the formula and directions for this problem.)* **Understanding the Unemployment Rate**To calculate the unemployment rate, you need to use the formula:**Unemployment rate = (# of unemployed ÷ labor force) × 100%**The Bureau of Labor Statistics (BLS) is 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.

Labour force is that part of the population which is actively searching for work. It is the…

Answered: Suppose that New Zombie has adopted the…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC