Quiz 12: Unemployment

Business

Use table to do the calculations: img To calculate the unemployed workers at the start of month: In the 1 st month - 25,000 are unemployed In the 2 nd month - 10,000 are unemployed img in the 3 rd month - 8,000 are unemployed img In the 4 th month - 6,400 are unemployed img In the 5 th month 5,120 are unemployed img In the 6 th month 4,096 are unemployed img Number of exit's: In the 1 st month, 2 nd month, 3 rd month, 4 th month, 5 th month and 6 th month are as under: img Number of stayers in the 1 st month, 2 nd month, 3 rd month, 4 th month, 5 th month and 6 th month are as under: img Months for duration for the 1 st month, 2 nd month, 3 rd month, 4 th month, 5 th month and 6 th month is as under: Number of exiters * months img a) The 25,000 workers have 58,616 months of unemployment. One worker will be unemployed for 2.34 months. img b) Fraction of workers unemployed for log spells of 5 to 6 months are 5,120 , 20.5% 0f 25,000 workers: img c) Persons who are have fraction of long term unemployment spells for 5 or more monthe are as under: img d) The unemployment with long spells has contributed more to the nature of unemployment problem in this example.

The pattern of unemployment since 1960s has been as under: The unemployment rate was 4.8% in the 1960s, which rose to 6.2% in the 1970s and further to 7.3 in the 1980s. There was a dramatic fall in the unemployment rate in the 1990s, it was only 4%. Due to the recession in 2008 there has been a sharp rise in the unemployment rate from 4.6% in 2007 to 9.6% in 2010. Certain observations have been made about the unemployment in the U.S. Unemployment amongst the less educated is higher. It was 14.9% for college dropouts and 4.7% for college graduates. Unemployment was higher amongst younger workers. It is 27% for teenagers and only 7% for age group 45 years to 65 years. Unemployment rates are higher amongst blacks. It is 14.8%. Unemployment rates are higher amongst women. It is 15.3% for women and only 9.8 % for men. Industry wise the unemployment rate in construction is 19%, manufacturing 12.1% and in transportation and public utilities it is 8.9%. In 2010, 43.3% of the workers are unemployed in long term spells of unemployment. The unemployment rate has been around 4.6%.

a) As per table 610 of 2008 U.S. Statistical Abstract 5882000 workers in the age group of 20 years or more were unemployed in the U.S. in 2001: Show the calculations; img img b) Calculate the total number of weeks of unemployment: Number of workers unemployed * unemployment spell in weeks img