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

Unemployment rate is a measure of the percentage of the total labor force that is unemployed but…

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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In a given community, the unemployment rate is 4% and their working-age population is 930,000. Labor force participation was 81% in this community in December of 2009. In January 2010 a new social security policy was implemented, allowing people to retire and collect their social security benefits earlier than expected. 200 thousand older workers retired at the end of January due to the new policy. Further, 2000 senior citizens that were out of the labor force (in December) started collecting their social security retirement benefits in January due to their past contributions. What is the Unemployment rate in February assuming everything else was fixed at their December values?
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?
Assume that people in an economy only consume the following goods shown in the table: Rice Meat Juice Year 1 price P2 P4 P1 Year 1 quantity 100 100 200 Year 2 price P2 P6 P2 Year 2 quantity 100 100 200 Calculate the % change in the price of every goods. Using the same method with the CPI, calculate the % change of the overall price level. If you were to learn that juice increased in size from Year 1 to Year 2, should that information affects your calculation of the inflation rate? If so, how? If you were to learn that juice introduced new flavors in Year 2, should that information affect your calculation of the inflation rate? If so, how?
The following table contains unemployment statistics from 2013 for three different countries: Canada, the United Kingdom (UK), and Italy. (Source: “International Labor Comparisons.”Bureau of Labor Statistics) Fill in the table using the given data. Country Working-Age (Civilian Not in Civilian Employed Unemployed Unemployment Non-institutionalized) the Labor Force Labor Force (Thousands) (Thousands) Rate Population (Thousands) (Thousands) (Percent) (Thousands) Canada 27,922 9,306 18,616 17,445 1,171 UK 50,473 18,487 29,439 2,547 Italy 26,365 22,620 2,744
The following table gives the CPI basket for 2000 and 2001. Suppose that 2000 is the reference base period: Item Quantity Price Price (2000) (2000) (2001) Oranges 50 $0.90 $0.75 Bananas 100 $0.50 $0.95 Chicken 200 $2.00 $2.50 Beef 100 $5.00 $4.80 Bread 300 $1.75 $2.00 a. What is the cost of the CPI basket in 2000? b. What is the cost of the CPI basket in 2001? c. What is the CPI for 200O?