The Bureau of Labor Statistics (BLS) adjusts the numbers from the household survey to estimate the employment picture for the entire population. Once the adjustment is made, the BLS uses the figures to generate key employment indicators. The following table presents information from the household surveys conducted for November 2017 and, for purposes of comparison, November 2016. The numbers in the table are listed in thousands. For example, the number of unemployed in the table for November 2017 indicates that about 6.6 million people were unemployed at that time.
The Bureau of Labor Statistics (BLS) adjusts the numbers from the household survey to estimate the employment picture for the entire population. Once the adjustment is made, the BLS uses the figures to generate key employment indicators. The following table presents information from the household surveys conducted for November 2017 and, for purposes of comparison, November 2016. The numbers in the table are listed in thousands. For example, the number of unemployed in the table for November 2017 indicates that about 6.6 million people were unemployed at that time.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![To get a more accurate picture of underemployment in the economy, the BLS calculates several alternative measures of labor underutilization:
- **The U-1 measure of labor underutilization** measures the percentage of the labor force that has been unemployed for 15 weeks or more at the time of the household survey. In November 2016, U-1 was calculated as follows:
\[
\frac{2,929}{159,457} \times 100 = 1.8\%
\]
- Another measure, the **U-4 measure of labor underutilization**, treats discouraged workers as though they were unemployed and part of the labor force. To calculate U-4, the BLS divides the sum of unemployed and discouraged workers by the sum of the labor force and discouraged workers. In November 2016, U-4 was calculated as follows:
\[
\frac{7,409 + 5,837}{159,457 + 5,837} \times 100 = 8.0\%
\]
Based on the numbers in the previous data, indicate whether each of the following statements accurately describes the differences in the employment situation between November 2016 and November 2017:
| Statement | True | False |
|-------------------------------------------------------------------------------------------------------------|------|-------|
| The U-1 and U-4 measures of labor underutilization were lower in November 2017 than they were in November 2016. | | |
| A smaller number of jobless people who wanted a job and were available to work had given up on their job search in November 2017 compared to November 2016. | | |
| The typical unemployed worker in November 2017 was more likely to have been unemployed for 15 weeks or more than the typical unemployed worker in November 2016. | | |
| A smaller fraction of the civilian noninstitutional population was in the labor force in November 2017 than in November 2016. | | |
| In November 2017, a larger fraction of the civilian noninstitutional population was employed than in November 2016. | | |
The official unemployment rate and the U-4 measure of labor underutilization are two different measures of joblessness in the economy.
**Excluding** discouraged workers from the official unemployment rate may cause the official rate to _______________ the](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc19a2b88-1c0e-4a6a-a3c8-ae203e8204b7%2Ff8cdf726-a1e5-4f91-86b9-becd5c3d9068%2Fic7vh6t_processed.png&w=3840&q=75)
Transcribed Image Text:To get a more accurate picture of underemployment in the economy, the BLS calculates several alternative measures of labor underutilization:
- **The U-1 measure of labor underutilization** measures the percentage of the labor force that has been unemployed for 15 weeks or more at the time of the household survey. In November 2016, U-1 was calculated as follows:
\[
\frac{2,929}{159,457} \times 100 = 1.8\%
\]
- Another measure, the **U-4 measure of labor underutilization**, treats discouraged workers as though they were unemployed and part of the labor force. To calculate U-4, the BLS divides the sum of unemployed and discouraged workers by the sum of the labor force and discouraged workers. In November 2016, U-4 was calculated as follows:
\[
\frac{7,409 + 5,837}{159,457 + 5,837} \times 100 = 8.0\%
\]
Based on the numbers in the previous data, indicate whether each of the following statements accurately describes the differences in the employment situation between November 2016 and November 2017:
| Statement | True | False |
|-------------------------------------------------------------------------------------------------------------|------|-------|
| The U-1 and U-4 measures of labor underutilization were lower in November 2017 than they were in November 2016. | | |
| A smaller number of jobless people who wanted a job and were available to work had given up on their job search in November 2017 compared to November 2016. | | |
| The typical unemployed worker in November 2017 was more likely to have been unemployed for 15 weeks or more than the typical unemployed worker in November 2016. | | |
| A smaller fraction of the civilian noninstitutional population was in the labor force in November 2017 than in November 2016. | | |
| In November 2017, a larger fraction of the civilian noninstitutional population was employed than in November 2016. | | |
The official unemployment rate and the U-4 measure of labor underutilization are two different measures of joblessness in the economy.
**Excluding** discouraged workers from the official unemployment rate may cause the official rate to _______________ the
![**Key Employment Indicators from the Household Survey**
The Bureau of Labor Statistics (BLS) adjusts the numbers from the household survey to estimate the employment picture for the entire population. Once the adjustment is made, the BLS uses the figures to generate key employment indicators.
The following table presents information from household surveys conducted for November 2017 and, for purposes of comparison, November 2016. The numbers in the table are listed in thousands. For example, the number of unemployed in the table for November 2017 indicates that about 6.6 million people were unemployed at that time.
**Table: Employment Indicators (in thousands)**
| | November 2016 | November 2017 |
|---------------|---------------|---------------|
| Civilian noninstitutional population | 254,540 | 255,949 |
| Civilian labor force | 159,457 | 161,237 |
| Participation rate | 62.6% | % |
| Employed | 152,048 | 153,918 |
| Employment-population ratio| 59.7% | % |
| Unemployed | 7,409 | 6,610 |
| Official unemployment rate| 4.6% | % |
| Unemployed 15 weeks or more| 2,929 | 2,514 |
| U-1 labor underutilization| 1.8% | % |
| Discouraged workers | 5,837 | 5,238 |
| U-4 labor underutilization| 8.0% | % |
Use the information lists below to help you fill in the missing values in the table.
**Instructions to Compute Common Economic Indicators:**
- **The participation rate** is the percentage of the working-age population in the labor force, either employed or searching for employment. In November 2016, it was calculated as follows:
\[
\text{Participation Rate} = \left( \frac{159,457}{254,540} \right) \times 100 = 62.6\%
\]
- **The employment-population ratio** is the percentage of the working-age population that is employed. In November 2016, it was:
\[
\text{Employment-Population Ratio} = \left](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc19a2b88-1c0e-4a6a-a3c8-ae203e8204b7%2Ff8cdf726-a1e5-4f91-86b9-becd5c3d9068%2F15f83k_processed.png&w=3840&q=75)
Transcribed Image Text:**Key Employment Indicators from the Household Survey**
The Bureau of Labor Statistics (BLS) adjusts the numbers from the household survey to estimate the employment picture for the entire population. Once the adjustment is made, the BLS uses the figures to generate key employment indicators.
The following table presents information from household surveys conducted for November 2017 and, for purposes of comparison, November 2016. The numbers in the table are listed in thousands. For example, the number of unemployed in the table for November 2017 indicates that about 6.6 million people were unemployed at that time.
**Table: Employment Indicators (in thousands)**
| | November 2016 | November 2017 |
|---------------|---------------|---------------|
| Civilian noninstitutional population | 254,540 | 255,949 |
| Civilian labor force | 159,457 | 161,237 |
| Participation rate | 62.6% | % |
| Employed | 152,048 | 153,918 |
| Employment-population ratio| 59.7% | % |
| Unemployed | 7,409 | 6,610 |
| Official unemployment rate| 4.6% | % |
| Unemployed 15 weeks or more| 2,929 | 2,514 |
| U-1 labor underutilization| 1.8% | % |
| Discouraged workers | 5,837 | 5,238 |
| U-4 labor underutilization| 8.0% | % |
Use the information lists below to help you fill in the missing values in the table.
**Instructions to Compute Common Economic Indicators:**
- **The participation rate** is the percentage of the working-age population in the labor force, either employed or searching for employment. In November 2016, it was calculated as follows:
\[
\text{Participation Rate} = \left( \frac{159,457}{254,540} \right) \times 100 = 62.6\%
\]
- **The employment-population ratio** is the percentage of the working-age population that is employed. In November 2016, it was:
\[
\text{Employment-Population Ratio} = \left
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