Quiz 20: Unemployment and Its Natural Rate
Unemployment rate: Table-1 presents the division of population in 6 different categories. Table-1 The work force will be considered as employed those who worked as paid employees, worked in their own business, or worked in business owned by family member. Both full-time and part-time workers belong to this category. Unemployed category work force is those who are willing to work and trying to get job during last four weeks. In Table-1, only 20 persons are in this category. Hence, the number of unemployed work force is persons. Thus, the option 'b' is correct.
a. Total adult population: Total adult population can be calculated by adding adult employed, adult unemployed and adult not included in the labor force. This is given below. Hence, the total adult population is . b. Total labor force: Total labor force can be calculated by adding adult employed and adult unemployed. This is given below. Hence, the labor force is . c. Labor force participation: Calculation of the labor force participation is given below: The labor force participation is percent. d. Unemployment rate: Calculation of the unemployment rate is given below: The unemployment rate is percent.
Bureau of Labor Statistics (BLS) is a part of the Department of Labor which conducts regular surveys on the basis of which, the BLS has divided people who are adults into three categories: Employed : People working in all sectors who are able to earn their livelihood are included in this category. Whether paid or unpaid, full-time or part-time, on leave or not on leave are included in this category. Unemployed : People who are available for work but are not getting work to earn their livelihood fall into this category. People who are laid off and are expecting a call from their employer are also included in this category. Not in the labor force : People who are neither employed or unemployed are included in this category. People like full-time students, homemakers or retirees are included in this category. According to BLS, Labor force: It is defined as the summation of employed and unemployed people. Unemployment rate : It is defined as the percentage of the labor force that is unemployed. Labor- force participation rate : It is defined as the percentage of total adult population of the country that is in the labor force.