Adult population by group Number employed 20000 Number unem

Adult population by group Number employed = 20,000 Number unemployed = 5,000 Adult population = 32,000 5. A. Use the table above to calculate the following: The labor force. Show your work B. The number of people not in the labor force. Show your work. C. The labor force participation rate. Show your work and interpret your result. D. The unemployment rate. Show your work.

Solution

Ans:

A) Labor force = Employed + Unemployed

= 20000 + 5000

   = 25000

B) Number of people not in the labor force = Adult population - Labor force

= 32000 - 25000

= 7000

C) Labor force participation rate = Labor force / Adult population

   = 25000 / 32000

   = 0.78 or 78%

Labor force participation rate represents the portion of the economy\'s labor force which is active. It refers to people who are employed or actively looking for employment.In this case 78% of the labor force is active.

D) Unemployment rate = Unemployed / Labor force

   = 5000 / 25000

= 0.20 or 20%