CH 15
Which of the following statements correctly describe discouraged workers? (If none of the choices apply, leave all of the checkboxes blank.) Check all that apply. They are counted as part of the labor force by the Bureau of Labor Statistics They are employed workers who want to earn higher wages. O They are full-time workers who would like to work only part-time ? They have given up on looking for a job. The following table contains U.S. employment information from December 2010 Civilian Population (Persons 16 yeers old and over) 238,889,000 Employed Unemployed Discouraged (Persons) 39,206,000 14,485,0001,318,000 (Persons) (Persons) The Bureau of Labor Statistics has several measures of joblessness in addition to the officiel unemployment rate. One alternative is the U-4 measure of labor underutilization, which is calculated as follows yed+ Discou 114 \" 100× F in the folowing table by cakculating the official unemployment rate and the uat mesure o lobor underutiization Official Unemployment Rate U-4 Measure of Labor Underutilization Percent) (Percent) The official nemployme economy increase nt rate and the U-4 measure of labor underutilization are two aifferent measures of joblessness in the If the Bure decrease rate would eL-?statistics were to include discouraged workers in the oreal unemplay ment rate, the reported unemplaymett
A person who wants a job but gives up looking for the job is called discouraged worker. The fourth option is correct.
Official unemployment rate=(Total number of unemployed)*100/(Labor force)
=(14485000*100)/(238889000)
=6.06%
U-4 measures of labor underutilization=(14485000+1318000)*100/(238889000+1318000)
=6.58%
If the Bureau labor statistics were to include discouraged worker in the official unemployment rate, the reported unemployment rate would increase.
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