Mr. Weiss

Calculating the Unemployment Rate – Section 3 – Module 12Calculating the Unemployment Rate – Section 3 – Module 12

The following formulas will be useful in answering the questions in this The following formulas will be useful in answering the questions in this problem set:problem set:Labor force = number of employed + number of unemployedLabor force = number of employed + number of unemployed Unemployment rate = Unemployment rate = Number of Unemployed Number of Unemployed X 100 percent X 100 percent

Labor ForceLabor Force  Labor force participation rate = Labor force participation rate = Labor ForceLabor Force X 100 percent X 100 percent

Adult PopulationAdult Population  Adult population 223 million;Adult population 223 million; EmployedEmployed 139 million139 millionUnemployedUnemployed 8 million; 8 million; Not in labor force 76 millionNot in labor force 76 million

Mr. Weiss

Calculating the Unemployment Rate – Section 3 – Module 12Calculating the Unemployment Rate – Section 3 – Module 12

The following formulas will be useful in answering the questions in this problem set:The following formulas will be useful in answering the questions in this problem set:Labor force = number of employed + number of unemployedLabor force = number of employed + number of unemployed Unemployment rate = Unemployment rate = Number of Unemployed Number of Unemployed X 100 percent X 100 percent

Labor ForceLabor Force  Labor force participation rate = Labor force participation rate = Labor ForceLabor Force X 100 percent X 100 percent

Adult PopulationAdult Population  Adult population 223 million;Adult population 223 million; EmployedEmployed 139 million139 millionUnemployedUnemployed 8 million; 8 million; Not in labor force 76 millionNot in labor force 76 million

Questions:Questions:1.1.Calculate the size of the labor force.Calculate the size of the labor force.2.2.Calculate the unemployment rate.Calculate the unemployment rate.3.3.Calculate the labor-force participation rate.Calculate the labor-force participation rate.

Mr. Weiss

Calculating the Unemployment Rate – Section 3 – Module 12Calculating the Unemployment Rate – Section 3 – Module 12

Answers:

1.1.Labor Force = Number employed (139 million) + number of unemployed (8 Labor Force = Number employed (139 million) + number of unemployed (8 million) = 147 million.million) = 147 million.

2. Unemployment rate = 2. Unemployment rate = Number of Unemployed (8 million) Number of Unemployed (8 million) X 100 percent X 100 percent Labor Force (147 million)Labor Force (147 million)

= 5.4%= 5.4%

3. Labor force participation rate = 3. Labor force participation rate = Labor Force (147 million)Labor Force (147 million) X 100 percent X 100 percent Adult Population (223 million)Adult Population (223 million)

= 65.9%= 65.9%