Complete the right half of the following equation to reflect the labor force participation rate reported by the BLS. Labor Force Participation Rate=.
According to this formula, what is the labor force participation rate of this economy of six people?
a. 20%.
b. 60%.
c. 66.67%.
d. 200%.
Complete the right half of the following equation to reflect the unemployment rate reported by the BLS.
Unemployment Rate=.
According to this formula, what is the unemployment rate of this economy of six people?
a. 20%.
b. 60%.
c. 66.67%.
d. 200%.
Measuring employment, unemployment, and labor force participation
Consider a small economy composed of six people: Clancy, Eileen, Hubert, Kate, Poornima, and Manuel. 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 of 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 Status
Clancy is a 73-year-old professor. He teaches only one or two courses
a year, but he's still pursuing an active research agenda.
Eileen is a 35-year-old professional basketball player. She finished her
last season as a player 3 weeks ago and is currently interviewing for
a coaching position.
Hubert is a 78-year-old retired professor. He enjoys volunteering
at the local public library.
Poornima is a 29-year-old who lost her job as an associate producer
for a radio station. After spending a few weeks out of work and
interviewing for several other positions, she gave up on her job search
and decided to go back to grad school, She made that decision a few
months ago.
Manuel is a famous novelist. He is spending the summer at his lake
house in upstate New York, doing a little writing each day but mostly
spending his time gardening and reading.
Kate is a 10-year-old student at Southside Middle School. She babysits
her younger sister and does other chores, so her parents give her an
allowance of $30 per week.