Question

Explan. 1.8 Suppose the number of employed people in an economy is 312,545,372. The unemployment rate in this economy is 7.4 percent, or 074, and the labor force participation rate is 80 percent, or 80. a. What is the size of the labor force? b. How many people are unemployed? c. What is the size of the working-age population? On og notion in Eurone nay higher unemployment

help

Answer 1

ragen Answer: Labour force is defined as the number of people who are unemployed and empoled and who are 16 years old or above it rate is the ratio La Bour of total force adult participation population. unemployment rate measures the number of people unemployed as a percent of the. total workforce. it is given that the there are 312,545, 372 People are employed. 7.4% is the rate of unemployment and 80% is the rate of la Bour force participation.

Page @ Heve, size of labor force is to determine using the given figures in order to do this, first calculate the employment rate using the unemployment rate and the calculate the labor force as follows. Since, unemployment rate is 7.14% so the employment rate will be 92.80/01 - 100% -7.4%). Now the labour is calculated as follows. employnpeoplex 100 employment rate=en 10 bow Force 312,545, 312 x 100 92.6 = 1aB of force - 312, 545, 372 x 100 BOX 1080 = 3 92.6 - 3,375, 220 X 100 = 337,522, 000 Hence, the size of labour forces=1337, 522,000)

people is Here, number of unemployed calculated as follows. = loa bor force - employed people. - 337, 522,000 - 312 ,545, 372 224,976, 628 Hence, the number of unemployed people is 24,976,6281 Here, Size of working age population is calculated using the labour force paticipitation labour Force lo ution rate= rates follows. labour force partipication rate Population 337, 522,000 population 0.80 Population - 337, 522,000 - 0.80 = 421,902, 500 Hence, the answer is 1421, 902, 500