1) Describe how the Bureau of Labor Statistics (BLS) measures unemployment. 2) E

Question

1) Describe how the Bureau of Labor Statistics (BLS) measures unemployment.

2) Evaluate strengths and limitations of BLS unemployment statistics.

3) What are the causes of frictional, cyclical, and structural unemployment?

4) What is full employment or natural rate of unemployment?

5) Calculate: If there are 330 million people living in the U.S, and 280 million are eligible workers while 150 million are in the labor force with 7% unemployed, what is the number of unemployed workers?

6) Calculate: If there are 330 million people living in the U.S, but 1million died of health issues leaving 279 million eligible workers, what is the unemployment rate if 150 million are in the labor force and 5 million are actively looking work?

7) Calculate: If there are 330 million people living in the U.S, and 280 million are eligible workers while 60 million are considered discouraged workers and 20 million are considered unemployed at a rate of 10%, what is the number of people in the labor force?

Explanation / Answer

ANSWER:

1- The Bureau of Labour Statistics (BLS) measures unemployment by Current Population Survey (CPS) method:

Formula of unemployment rate is = number of unemployed labours/ total labour face

2- Strengths and limitations of BLS unemployment statistics:

Strengths:

Weaknesses :

3) The causes of

Frictional: frictional unemployment occurs when workers leave one job and searching for another job the gap period between the two jobs is the frictional unemployment.

Cyclical unemployment: it occurs due the fluctuation in our economy or due to business cycle as when there is recession in the economy many people lose their jobs and while in the recovery stage people get employment.     

Structural unemployment: structural unemployment occurs when there is mismatch labour skills with their work means a person carry some other skills while work different from the skills he poses. It occurs due to the economic forces other than business cycle.

4. Full employment: it is the situation when everyone who have ability to work and willingness to work at the current wage rates is getting employment or work or it is the situation when the labour who are ready to work are getting work in the economy.

5-

The number of unemployed workers = 280 (eligible workers) – 150 (labour force)

= 130

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.