1. Measuring employment, unemployment, and labor force participation Consider a

Question

1. Measuring employment, unemployment, and labor force participation Consider a small economy composed of six people: Yakov, Ana, Charles, Dina, Juanita, and Gilberto. Each person's employment status is described in the following table Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person's status as employed, unemployed, "not in the labor force" (if not in the civilian labor force but still part of the adult population), or "not in the adult population" if not in the civilian adult population. Person Yakov is a 75-year-old professor. He teaches only one or two courses a year, but he's still pursuing an active research agenda. Ana is a 36-year-old autoworker who was just laid off by her employer. She is trying to find any kind of job to help make ends meet. Charles is a 77-year-old retired professor. He enjoys volunteering at the local public library. Juanita is a 26-year-old who lost her job as a copy editor for a local newspaper. She has spent the past few weeks out of work and interviewing for other editing jobs. She is thinking about going back to grad school if her job search doesn't succeed after a few more weeks. Gilberto is a 17-year-old who just graduated from high school. He is taking it easy this summer, relaxing by the pool with his friends and family, and volunteering part-time at the local nursing home. Dina is a 10-year-old student at West Valley Middle School. She babysits her younger sister and does other chores, so her parents give her an allowance of $25 per week. Status

Explanation / Answer

Answer : A : Yakol is a 75 year old professor and he is considering as an employed person in the labour force.

B: Ana is 36 years old and searching for a job he is considered as unemployed in the workforce because ana is searching for a job.

C : Charles is a 77 year old professor and not working in anywhere for money. so it is not a part of labour force.

D : Juanita is a 26 year old lost his job he is part of unemployed person.

E: Gilberto is a 17 year old just graduated but not searching a job it is considered as not part of labour force.

F : Dina is a small girl so it is not part of labour force.

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Answer : Labour force particpation rate = Labour force/ Adult population *100

Total labour force = 3 (Employed +Unemployed)

Adult population = 5

Labour force particpation rate = 3/5*100 = 60%

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Unemployed rate = Number of unemployed / Labour force*100

Number of unemployed =2

Labour force =3

Unemployed rate = 100*2/3 = 66.67%

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