1 Labor statistics These are the US statistics for 2016 Sour

1. Labor statistics These are the US statistics for 2016 (Source BLS): the civilian non institutional population is the emploved the unemployed 254 million 151 million 8 million use the information to answer the following questions: what is the size of the labor force b. how many people are out of the labor force calculate the participation rate calculate the unemployment rate calculate the non-employment rate if every month 1,897,000 unemployed give up looking for a fob while 1,530,000 find à job, i. calculate the average duration of unemployment ii. calculate the average time it takes for an unemployed to become employed calculate the average flows in and out of the labor force as a percentage of the labor force how many new discouraged workers are there every month?

Solution

(a)

Calculate the size of the Labor force -

Labor force = Employed + Unemployed

Labor force = 151 million + 8 million

Labor force = 159 million

The size of the labor force is 159 million.

(b)

Calculate the number of people out of the labor force -

Number of people out of the labor force = Civilian non-institutional population - Labor force

Number of people out of the labor force = 254 million - 159 million

Number of people out of the labor force = 95 million

Thus, 95 million people are out of labor force.

(c)

Calculate the participation rate -

Participation rate = (Labor force/Civilian non-institutional population) * 100

Participation rate = (159 million/254 million) * 100 = 62.60%

The Participation rate is 62.60 percent.

(d)

Calculate the unemployment rate -

Unemployment rate = (Unemployed/Labor force) * 100

Unemployment rate = (8 million/159 million) * 100 = 5.03%

The Unemployment rate is 5.03 percent.